European stocks have risen to two week highs following extraordinary gains in Asia and the United States, as exuberance shot through markets and reversed initial dives in reaction to Donald Trump's U.S. presidential victory. Sonia Legg reports
A London trading floor just 24 hours after the biggest political shock for decades - and all's calm. In fact European stocks hit a two week high after extraordinary gains in Asia and the U.S. Early dives as Trump's victory came clear seemingly all forgotten. (SOUNDBITE) (English): CMC MARKETS ANALYST, MICHAEL HEWSON, SAYING: "When he did his acceptance speech sentiment switched quite sharply and he came across quite statesmanlike in complete contrast to all the rhetoric that had been a trademark of his campaign and I think markets are looking at a goldilocks scenario." Markets aren't known for focussing on the positives. But there was no arguing with a Nikkei up 7 percent at one point after sinking 5 percent on Wednesday. It seems investors are dismissing Trump's campaign as a sales pitch, choosing instead to look at the potential boost from possible fiscal stimulus and tax cuts. (SOUNDBITE) (English): CMC MARKETS ANALYST, MICHAEL HEWSON, SAYING: "I think there's a perception that the more moderate Republicans will reign in the worst of Mr Trump's instincts now that may seem naive but ultimately that's what markets are focussing on at the moment." Even his well documented dislike of Fed Chair Janet Yellen is being brushed aside - his spokespeople saying he's happy for her to continue. (SOUNDBITE) (English): CMC MARKETS ANALYST, MICHAEL HEWSON, SAYING: "I think potentially he could welcome a rate rise now, certainly he's got no reason to oppose one seeing as he criticised Janet Yellen for keeping rates artificially low." How long it'll last is anybody's guess. S&P Global has affirmed America's AA+ credit rating. But uncertainty over the future path of government debt would - it says - prevent any upgrade.