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Donald Trump’s shock US election victory in the early hours of Wednesday caused a shockwave to course through derivative markets overnight. But by midday in London traders said the overall reaction was much more orderly than in the aftermath of the UK vote in June to leave the European Union - and by close of business some markets had made full scale retrenchment.

Equities in Europe have reacted with resilience to this morning’s surprise that Donald Trump will be the next US president.

The European high yield market on Wednesday proved that it has learned at least one lesson from its Brexit experience: the unexpected does not mean market shutdown. Despite Donald Trump's surprise US presidential election win on Wednesday morning, HY market participants think issuance could resume quickly.

The euro corporate bond market sold off on Wednesday morning in reaction to Donald Trump’s victory in the US presidential election, but spread widening was limited, and bankers are already preparing new issues for Thursday.

Donald Trump may have shocked the world with his US presidential election win in the early hours of Wednesday, but the public sector bond market is already nervously eyeing the next chunk of political risk — particularly given the growing trend for polling companies to make spectacularly wrong predictions.

Euro corporate bonds budged little on Wednesday morning as market participants reacted to Donald Trump’s surprise US election victory, with some investors buying on the dip and expectations growing for further central bank intervention in the market.

The FIG market looked set to shrug off Donald Trump’s surprise victory in the US presidential election on Wednesday, and bankers were optimistic that new issuance could restart in a matter of days.

Capital markets participants in Asia were digesting the news of Donald Trump’s victory in the US presidential election as markets in the region went into freefall. While bankers and investors admit that no market will be immune to the news, they are expecting a quick rebound in ECM, while debt issuers will take longer to come to terms with the result.

The European Central Bank’s politicised decision to allow bail-inable German senior unsecured debt to be eligible for repo, whilst denying the same rights for everyone else, is untenable.

Investor support for Turkey has proved remarkably resilient this year. A coup attempt and ensuing state of emergency, and two downgrades to junk, did little to shake support, but Turkey’s luck is running out as the attention turns to deteriorating economic indicators from the region.

Market participants are confident that the strong technical support of the European Central Bank will protect euro corporate bonds from US election induced volatility, but central bank intervention does not seem as powerful a tool as it once was.

Do not be reassured by the checks and balances narrative. The US presidential election matters desperately. Either the US will be in a position to keep leading the world, or it won’t.