Markets plummeted yesterday as a stark divide in America’s population has emerged. Donald Trump is elected to be the president of the United States of America, spiralling the world around him into disarray.
An early bearish market rained over the morning’s trades, as the outcome of the election caused turbulence in the markets, spurring reactions of fear and pessimism. The revolt against the establishment was the catapult that forced the status quo to cede control of the white house to Trump – the candidate who sung promises of flawed, mythologizing policy.
The political novice sent both the S&P 500 and the Nikkei 225 futures down 5%. The indices weren’t the only one to suffer, crude oil fell almost 3% and the dollar fell 3.6%. USDMXN which was dubbed the Trump proxy was dismayed by the news, it dropped at least 11%. Unsurprisingly, investors sought refuge in gold which rose 5%.
Uncertainty sears from Trump’s policy proposals, they have the potential, if bought to fruition, to burn many investors and to inject a burden of volatility into the markets. The aberration has just started to reveal its effects.
A glimmer of hope resides within the brash electorate. Trump’s election speech was subdued, filled with proposals of togetherness, reaching out an olive branch to those who were against him up to now. Markets reacted to this peace offering rallying near the end of the trading day. The Nasdaq jumped up 1.1%, the S&P 500 rose 1.1%. USDJPY had a daily high of 105.97.