The prospect of a Trump presidency will see markets under pressure today, but the immediate outlook for the US construction sector is much brighter according to Davy stockbrokers
Davy's Robert Gardiner said that Trump's message on infrastructure spending has been consistent and while light on detail, he has continually pushed infrastructure spending as a means to create jobs.
CRH seems like an obvious beneficiary from Trump's planned polices in this area, Mr Gardiner said.
He pointed out that CRH is the largest producer of asphalt and the third-largest producer of construction aggregates in the US. US profits account for about 60% of group of which about 40% of directly exposed to infrastructure.
Shares in CRH closed sharply higher in Dublin trade this evening.
Meanwhile, Eugene Kiernan, Head of Investment Strategy, Appian Asset Management, said today's shock US election result brings both policy and market uncertainty.
While stock markets are expected to be volatile, Mr Kiernan said that we should not read too much into these short term movements.
Mr Kiernan said an important near term event is what the US Federal Reserve does in December.
He said that a Clinton victory would have almost copper-fastened a rate hike but the Fed have been willing to hit the pause button in the face of uncertainty.
"Market conditions over the next few weeks may play a role here," he added.
Brendan Jennings, Managing Partner at Deloitte, said that Trump's proposal to lower the US Federal Corporate tax rate from 35% to 15% and to pursue 'An America - First' trade policy could have a significant impact on Ireland's "small open economy" if carried through.
He said the new policies could mean that tax will become less of a deciding factor for US multinationals when deciding on optimum locations.
"The potential impacts of these policies should now act as a catalyst to take a fresh look at Ireland's market position and FDI strategy to ensure they will continue to work well for us in the changed US political landscape," he added.
Looking at the implications of a Trump presidency for the Irish economy, Investec economist Philip O'Sullivan said that the US is a major trading partner of Ireland as it is the destination for about 16% of total exports.
Ireland also acts as a de facto aircraft carrier for many large US multinationals' overseas operations, he added.
Mr O'Sullivan said said that as with Brexit, the immediate focus is on the currency markets. He said today's currency movements were not enough to damage the Irish export outlook.
"But with expectations of a tightening of Fed policy likely to be put back, it remains to be seen if the dollar weakens further," he added.
Meanwhile, IDA Ireland said that while it is diversifying into markets across the world, it expects that US companies will remain a very significant part of Ireland's foreign direct investment story.
In a statement, IDA said it enjoys strong partnerships with US investors, partnerships which have been built over many decades.
"US companies will have a continued need to have an international presence, and IDA will continue to position Ireland as the number one location from which US companies can internationalise their businesses," the state agency added.
