Markets plunge worldwide as Trump surges to the White House

One thing that the markets do seem to like is stability.

Trump's rather stunning upset seems to be having worldwide financial implications, with world stock markets off in some cases over 5%.

While we all wait and see what the president elect will actually do, or more importantly say, it seems that the world is less than enamored with the fellow. Certainly his claims of imposing heavy tariffs on goods imported from China and Mexico may have fairly immediate repercussions on our economy.

https://www.washingtonpost.com/news...worldwide-as-trump-shows-surprising-strength/

Global financial markets convulsed Tuesday night as Donald Trump was projected to claim victory in the race for the White House after a polarizing campaign that investors had largely bet against.

On Wall Street, all three major stock indices were down 4 percent or more late Tuesday evening in pre-market trading, with futures for the Dow Jones industrial average sliding more than 700 points at one point before paring those losses in the minutes before the results were clear. Futures trading was temporarily halted for the Standard & Poor's 500-stock index amid a 5 percent loss. By morning they had regained some ground.

The Mexican peso -- which has fallen as the Republican nominee rose in the polls during his campaign -- nosedived to an eight-year low, according to Bloomberg. The panic stretched all the way to Asia, where Japan’s Nikkei index plunged more than 900 points, or 5.4 percent, early Wednesday morning. In Europe, the Stoxx Europe 600 index was off 0.7 percent after dropping as much as 2.4 percent. In an early flight to safety, gold charged higher. U.S. Treasuries and the yen also surged.
What Election Night looked like
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Donald Trump, 70, will be the 45th president of the United States. The real-estate developer and former reality-TV star is the first person to win the presidency without having previously held public office or served in the U.S. military.

The assumption that Democratic nominee Hillary Clinton would notch a comfortable victory had boosted markets earlier in the week. But on Tuesday night, investors began to grapple with the possibility that Trump's controversial proposals to rip up long-standing trade agreements, deport millions of immigrants and radically re-engineer the tax code could become reality.

[Why markets are panicked about the possibility of a Trump presidency]

“It’s all a little bit crazy now,” said Chris Weston, chief markets strategist at IG Markets in Melbourne. “Pollsters need to go away and have a holiday – every single one of them should be fired. Markets weren’t prepared for this.”
Donald Trump's victory speech, in less than three minutes
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Early on the morning of Nov. 9, Republican President-elect Donald Trump addressed supporters in New York, declaring victory over Democrat Hillary Clinton. Here are key moments from that speech. (Video: Sarah Parnass/Photo: Ricky Carioti/The Washington Post)

The sell-off recalled the volatility following Britain's decision this summer to leave the European Union. Investors had largely dismissed the possibility of a so-called "Brexit" but then quickly reversed course as the votes were counted. That dynamic appeared to be playing out again, with Craig Erlam, senior market analyst for foreign exchange firm Oanda, calling Tuesday's rout simply "a bloodbath."

Among Trump's chief campaign promises has been to pull out of the North American Free Trade Agreement and slap double-digit tariffs on goods from Mexico and China, moves that experts fear could spark a trade war. He also has proposed massive tax cuts for both individuals and corporations that could cost as much as $6 trillion, according to the nonpartisan Tax Policy Center. Though Trump’s message of isolationism has resonated with voters who feel left behind by globalization, many experts have warned his proposals could wreck havoc on the U.S. recovery.

[The effect of Trump’s trade policies? Trade wars with China, Mexico that could cost U.S. millions of jobs, report says.]

Moody’s Analytics forecast Trump’s policies could lower employment by 3.5 million jobs and raise the unemployment rate to 7 percent by the end of his term. The firm also predicted the nation would enter a recession in 2018.

In addition, investors dialed back their expectations that the Federal Reserve would hike its benchmark interest rate in December. The central bank had hinted it was ready to move following signs of economic resilience, but that could be threatened amid the turbulence in financial markets.

“Trump has not held any public office before and lacks experience of making currency and fiscal policies. He also has extreme views,” said Yang Delong, chief economist at First Seafront Fund in Shenzhen. “All these will be viewed by the investors as huge uncertainty. That’s why the markets are down and the gold price is going up.”

But one of Trump’s most prominent supporters, billionaire Carl Icahn, predicted that the sell-off would be short-lived. Many of Trump's proposals have been lacking in detail, but his campaign has broadly argued that his aggressive stance would help lift the economy out of the doldrums and unleash unprecedented growth that would allow his programs to pay for themselves.

[Live updates from 2016 election and reactions]

"It's going to cost the rich guys in New York money, and that's too damn bad," Icahn said on CNBC on Tuesday night. "But you have to think about where this country is going to be in the next five, 10 years, and you can't have it going the way it's going."

However, the prospect of a Trump presidency was enough to persuade Mexican leaders to meet last week to craft a “contingency plan” in the event of an “adverse” election result. The head of Mexico’s central bank has compared a President Trump to a “hurricane” that could damage the country’s economy. In addition to hiking tariffs on its exports to the United States, Trump has made building a wall along the Mexican border a hallmark of his campaign. Already, the declining value of the peso has factored into the central bank’s decision to boost interest rates.

 

<<< MODERATOR EDIT: OFF TOPIC/FLAMEBAIT >>>

Of course the markets went ape! It's called uncertainty. It'll pass.

 

It's fine Wall Street needed their fingers rapped a little bit they will settle down. As to Mexico's paranoia they will be fine too but a lot of countries have been getting a free ride as elites profit off of our wacked trade policies and that I hope is over soon

 

The absolute last thing I will think about today is what the Chinese or Middle East thinks about America & Trump. "F" them, bring the jobs and pride back home.

 

Its going to be a great time to buy. I'm all set for this afternoon or tomorrow morning. Got $45k in cash ready to go!

 

Wall Street reacted to Anna Nicole Smith dying. Same would've happened if Clinton would've won. It will right itself and life will go on.

 

Mexico should be happy. They get to invest in a Wall!

 

What they ignore is that the plunge started yesterday before any clear winner could be called and when many polls predicted a Hillary win.

Yes it is just uncertainty and would have happened and Trump lost.

I recall seeing on the news at 3:00 pm long before any polling stations closed and long before anyone started counting that the market had dropped 700 points.

It will start to climb again and they have to find something else to blame on trump.

 

Do they?

I am not sure how one compels to pay for the building of a wall within another country.

I think, and I have been wrong as of late, that whole wall thing will turn out to be a work of complete fiction.

 

Optimist.

 

Sure because our government could never mandate someone give them money.......

 

Don’t Worry When the Stock Market Goes Crazy After Election

This was written when Hillary was still the clear landslide winner 3 days ago.

 

Yep CNN reported the S&P dropped 5.8% in 2012...

Wont change the fearmongering from some though ~

 

How many South American illegal immigrants are in this country? Who needs an investment, we can make a wall with them and around $142,000,000. (Things are a lot cheaper without having to pay bloated government paychecks)

Concrete, seismographs, and hypobaric explosives. Thats it.

 

Smells like Brexit to me...just recovered 800 points on the DOW this morning!

 

Which is an odd thing to say, as the moment I write this the Dow is down 67 points.

 

Soooooo only 730+ then...ha ha

 

But it's not. You are arguing to something that is patently nonexistent is real.

The Dow has not "recovered" 800 points this morning as you claimed. It is down.

 

In regards to the futures plunge after the call of a Trump win.. deal with it!

 

A far as I'm concerning, they can build it on their side of the river

 

"Stability" is money printing, deficits, and debt. I'm hopeful that kind of "stability" stops with Trump winning, and if it takes an inflated market to correct, so be it.

Good time to buy. I expect the stock market will recover relatively quickly.

 

Wow, DOW is now up?

Looks like this thread was a little premature.

 

it is a correction to the reliance of the rich on cheap labor from outsourcing and hiring illegal immigrants.

the correction will lead to loss of employment for the poor temporarily, but in the long term it will make them richer with higher paying jobs for low skilled work.

 

http://finance.yahoo.com/quote/^DJI?ltr=1

The market goes up and down.. Breaking news!

 

It's nice to see doom and gloom predictions shot down so quickly, though.