The jolt of euphoria that gripped the stock market after Donald Trump was re-elected has waned as investors have attempted to parse the effect his proposals and cabinet picks could have on industries and the economy.

The layman’s narrative of the 1930s is that America’s Smoot-Hawley tariffs set off a beggar-thy-neighbour spiral and caused the Great Depression. It is not true.

Donald Trump’s US election victory is a “wake-up call” for Europe to slash red tape and boost defence spending, three of the bloc’s top officials have warned.

Some European Union member states want the bloc to engage more urgently with Donald Trump’s transition team as they hope to stave off disruption and worsening tensions with its largest trading partner.