Bay Street analysts are optimistic that Canadian stocks will benefit in the long term from Donald Trump's victory, despite an initial market reaction that saw Canadian equities underperform their U.S. counterparts.

The S&P/TSX Composite Index initially declined but later recovered slightly, showing a 0.3% increase by noon Toronto time, while the S&P 500 surged by 2.1%. The initial decline in commodities and resource stocks has affected the TSX, but strategists believe this setback will be temporary. They expect a rebound in metals and oil prices, which could further support the Canadian market in the coming months.