Global markets rocked as Trump surges towards White House

Dollar weakens, Asian stocks down sharply and gold prices rally amid rising investors anxiety. Global markets were rocked on Wednesday by Donald Trump’s victory in the US presidential race with Asian stocks down sharply, the dollar weakening and gold prices rallying as investors raced for cover amid anxiety about his economic policies.

The FTSE 100 index slumped 130 points as London markets opened – a fall that was projected to be considerably bigger at more than 230 points until Trump took to the stage in New York to celebrate his victory.

Trump’s remarks helped take the sting out of some of the most violent moves by the time London markets opened. “It’s because he sounded more presidential, there was no mention of ‘lock her up” or ‘build a wall’,” said Jeremy Cook, chief economist at money brokers World First. “It was all, dare I say it, presidential.”

Trump’s remarks – more conciliatory than his campaigning talk – also helped pull back projections for the scale of the fall in the Dow Jones industrial index, which at one point looked set to plunge more than 800 points. This would have been an even bigger fall than it suffered in the aftermath of the Brexit vote, which wrong-footed investors in June.

After the first half hour of trading in London, the FTSE 100 index was showing a loss of about 50 points, or 0.7% and on Wall St the Dow Jones was being called about 400 points lower.

Earlier, Japan’s stock market index had tumbled 919 points and the dollar fell 3% against the yen as investors digested the implications of Trump’s presidency, which stunned investors who had been banking on Hillary Clinton winning the race for the White House.

Related posts

Leave a Comment