The Global Stock Markets demonstrated a sharp decline on Wednesday and is steadily recovering as Donald Trump made his way to be elected as the 45th President of the United States of America defeating the favoured Democratic candidate Hilary Clinton.
The World market became expectedly volatile on the night of the results as the victory of the Republican candidate became evident. In the last two days the markets had functioned and positioned themselves in such way that it was probably just time which was keeping Clinton away from her presumed victory. Many market analysts are drawing the comparison of the #trump victory to the recent Brexit results which was characterized by unexpected poll results and supposed populism.
As Trump edged closer to the White House, stock markets around the world demonstrated considerable stress. The Financial Times Stock Exchange 100 Index demonstrated at 1.4% decrease at the commencement of trade and is currently recovered to 0.4%.
The major Stock Markets of Europe such as Cac Index in Paris and Germany’s Dax in Frankfurt also demonstrated a plunge at the beginning of the trading hours before gaining some momentum and is currently demonstrating a dip of about 1.2%. Bolsa de Madrid is down by 2% and Borsa Italiana in Milan by about 2.4%. Indian Markets are down by 1.2%.
When the electoral results were rolling earlier in the day, the Dollar value fell to nearly 2% however, picked itself up to finish the day at 0.5%. The investors are moving their assets in the form of gold which has demonstrated a sharp increase of 3.1% and currently stands at $1314.
Mexican Peso suffered the most with Trump’s win as it hit a record low overnight and is still down an 8.5% after having recovered about 4%. During his electoral campaigns, Trump had earlier proclaimed about severing free trade ties with Mexico and disregarding the NAFTA agreement which was the predominant reason for this fall.
However, this volatility is expected to be short lived as Trump’s victory speech has already yielded to improved numbers in the US and around the world. However, Wall Street, who had earlier favoured Clinton over Trump because of some of his projected trade policies, chooses to wait and watch over Trump’s trading policies over emerging markets. #Donald Trump #US Election