Nov 12 2016 by Johnny Bowman
He also said if he was president Clinton would be in jail. The front-month VIX contract was recently up 16.1 percent. Traders have been selling bonds more aggressively to hedge against the possibility that interest rates, which have been ultra-low for years, could rise steadily again under Trump's administration. "It's really fascinating that the American public has had a chance to repudiate from the thumb of big government, corruption".
Trump managed to pull an upset over Democratic rival Hillary Clinton after winning several key battleground states, including Florida, Pennsylvania, and Ohio.
Asia kicked off a "Trump slump", with Tokyo diving on concerns over the untested policies of the billionaire businessman and reality TV star. "I just heard attacks on groups of people", said Stacey Carter, a commuter.
Analysts said the tech pullback was partly due to a rotation to other sectors and partly to worries the industry could suffer under Trump policy changes.
The Mexican peso plummeted by as much as 13% to a record low.
The stunning Trump success has markets extremely jittery early Wednesday morning as investors take cover for what is shaping up as an uncertain future for the United States.
Japan's Nikkei 225 index soared 6.7%, more than recovering losses from the previous session. Overnight, however, the Dow Jones Industrial Average climbed 1.4 per cent amid speculation that Mr Trump would ramp up fiscal stimulus and pursue a pro-business agenda, which are positive for corporate earnings.
A risk-off mood pervaded financial markets, driving down stock index futures and the Mexican peso, while gold and Treasuries prices rose. Utilities were down the most, sliding 3.4 percent, followed closely by consumer-focused stocks. Meanwhile, the S&P 500 index closed at 2,163, up about 24 points; while the Nasdaq climbed about 58 points to close at 5,251.
The 30-year Treasury bond yield gained nearly 25 basis points in its sharpest rise in more than five years; yields on the 10-year note climbed 21 basis points to breach the 2 percent mark for the first time since January.
Given Trump's stance on NAFTA and immigration, economists have said the Mexican economy could fall into a contraction if he wins. India's IT stocks fell further after the election results came in.
Moscow however rose on hopes of improving U.S. relations as Russian President Vladimir Putin congratulated Trump.
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President Barack Obama reportedly hoped have the deal approved by Congress before he turns over the White House to Trump. The agreement had been meant to improve relations with companies in the region and reduce China's economic influence.
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"Trump has proposed economic and trade policies which, if enacted, would represent a sharp departure from the status quo", HSBC Global Research said.
"While Trump slightly soothed some concerns in his victory speech, uncertainty remains over what kind of a USA he plans to lead", said Craig Erlam, senior market analyst at OANDA.
France's Cac index and Germany's Dax both closed about 1.5% higher after erasing losses of more than 2%. The FTSE 100 index of leading British shares was 0.7 percent higher. However, by the time Trump was confirmed the victor and made his speech, financial markets had steadied.
Dow and S&P futures also plunged after safe-play stocks, such as utilities and phone companies, were among the biggest gainers on Tuesday as investors focused on the US presidential election. After the opening bell on Wall Street, stocks rose across the board by a slight 0.2 percent, then drifted down about 0.2 percent. Trump has insisted that Mexico will pay for the wall.
The dollar strengthened sharply against the yen, which has traditionally a strong inverse correlation with US yields because higher USA yields encourage Japanese investors to buy more USA debt. Trump has pledged to clamp down on immigration to the USA and renegotiate free-trade agreements with countries including Mexico.
Investors will begin to look to see if Trump will cause further problems with his rhetoric that helped to polarize Americans and often caused investors to become spooked in the global financial markets.
Benchmark U.S. crude rose 29 cents to close at $45.27 a barrel in NY.
Throughout the summer and into the fall, USA markets were relatively quiet as investors became confident that Clinton would win.
Those concerns weighed heavily on Asian stocks. South Korea's Kospi advanced 2.3 per cent and Hong Kong's Hang Seng added 1.9 per cent. Australia's S&P/ASX 200 surged 3.3 per cent.
At 2:37 a.m. EST, multiple news outlets including The Associated Press have said Republican candidate Donald Trump will be the next President and global markets have tumbled. Gold had its biggest move since the aftermath of Britain's shock vote to leave the European Union, surging with haven assets including the yen and sovereign bonds.
Mahon says "globalization and the liberal economic consensus is in full retreat" if Trump doesn't temper his views.
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