Trading on the New York Stock Exchange was its most volatile since the Global Financial Crisis. Picture: Supplied.

US and European stockmarkets surprised almost everybody by closing higher, and Australian shares responded with a 3.3 per cent gain — more than recovering Wednesday’s losses.

However, investors and super fund members are being warned to expect volatile financial markets in the weeks ahead as the world tries to work out what President-elect Donald Trump will do.

Many forecasters had predicted share prices to fall 5-10 per cent if Mr Trump won the election, believing his lack of experience and combative nature would spook investors.

The information boards at the Australian Stock Exchange show the market rallying following yesterdays loses on news of US Republican Presidential candidate Donald Trump becoming the president. Picture: AAP/Dean LewinsSource:AAP

Statewide Super head of investments Con Michalakis said the surprise positive reaction showed that financial markets were poor at predicting events in uncertain times.

He said Mr Trump’s victory speech was “very presidential, and the markets reacted to that”. His comments about infrastructure spending, pro-growth and cutting regulation were welcomed.

“Expect more volatility in the days, weeks and months ahead as we adjust to a new regime,” Mr Michalakis said.

Natixis Global Asset Management chief market strategist David Lafferty described Mr Trump as “volatility personified” and said investors should assess their own tolerance to the pain of short-term financial losses.

The All Ordinaries index of 500 Australian stocks closed 170.6 points higher at 5408.9, led by strong rebounds among the big banks and 8 per cent gains by resources giants BHP Billiton and Rio Tinto. The Australian dollar also improved, up half a per cent to US76.7c.

There could still be market volatility ahead as the world gets used to Donald Trump’s win. Picture: AP/ Evan VucciSource:AP

Baillieu Holst financial adviser Travis Adams said 24 hours was a long time in financial markets and investors were now looking beyond the vote to Mr Trump’s potential policies and the global economic outlook.

“The likelihood of a reduction of the corporate tax rate in the United States under the new President is being seen as very pro-business,” he said.

“Financial markets across the world, including the share market in Australia, will be watching closely to see how Mr Trump’s pre-election campaigning will translate into action once he takes office in January.”

US markets closed on November 10 more than 1 per cent higher, as did key share markets in London, Paris and Germany.

US shares were on track for a 5 per cent fall in early trading, and Fat Prophets CEO Angus Geddes said their reversal was the most volatile since the Global Financial Crisis in 2008. He said he expected more volatility on share markets but believed they would rise strongly by the end of the year.

“Like Ronald Reagan, who America still holds great nostalgia for, I believe Donald Trump will surprise the world in terms of the President he will become,” he said.

“Trump is apolitical … Republicans control the White House, the Senate and the lower House. Unlike Obama, Trump has no excuses not to get things done.”