Trump wins.

The outside chance political outcome is once again the victor as news outlets and polls have been proved decisively wrong for a second time in six months.

Yet for all the scaremongering and populist tendencies he showed in the long and hard–fought election battle against the Democratic nominee Hillary Clinton, Trump’s victory speech this morning showed a surprisingly presidential tone. Gone was the hate–fueled rhetoric that his campaign will be remembered for, replaced instead with a serene call for cross–party cooperation in order to better the country that he will begin governing on January 20.

And markets have reacted.

From the lows reached at around 5am this morning, major indices across the globe have staged a remarkable rebound, reminiscent of the market reaction shown on and after June 24. If anything, this recovery has come about at a greater pace than the one witnessed earlier this year.

The UK Index 100 is flirting with positive territory, trading above the 6800 mark having fallen to lows of 6515 overnight.

The S&P 500, forecast by the likes of Barclays, Citi and RBC Capital Markets before the polls opened yesterday to fall by as much as 12% following a Trump victory, is instead down only around 2% having joined the 5am rally down 5%.

UK Pharmaceutical companies Shire and Hikma are outperforming the wider market, alongside the General Mining sector, as the USD recovered from 1 month overnight lows to rejoin its 3 week trading pattern. Trump (and the wider Republican Party) plans to repeal current President Barack Obama’s Affordable Healthcare Act, whilst a defeat for Clinton, who pledged to cap drug prices if she were elected, will also buoy the sector.

The UK Banking sector has been hit this morning, the diminished chances of a US Fed rate hike in December resulting from Trump’s surprise victory playing a part in this. Looking ahead, however, the banks could benefit if President Trump follows through with his pledge to repeal the Dodd–Frank act that has reigned in the risk banks are allowed to take post-2008.

UK Defence companies are also performing well, the perceived increase in defence spending that might result from the brash, motor–mouthed candidate winning the election helping BAE and Rolls–Royce to rally. But will the President elect come out all guns firing or reign in his perceived willingness to cause confrontation?

Overall the market reaction this morning has been (once again) surprising, with the apocalyptic forecasts from analysts of what a Trump victory would entail being replaced by positive relief–based sentiment that Trump’s first act as President elect was not regurgitating the questionable rhetoric that fuelled his campaign but a rather more solemn, presidential tone instead.

Whether this is a full disarmament of populist Trump or just a blip on the radar is yet to be seen. For the moment, however, markets remain calm.