Japanese market plummeted by 5 percent limit as wild betting took over

The Dow index reached a record high of 18,586 at the end of trading

Wall Street reached record highs on Wednesday as the markets strengthened and currencies rose after being initially threatened by Donald Trump's election win.

The Dow index closed on 18,586 after rising more than 250 points in what experts described as the biggest market turnaround since the 2008 global financial crisis.

It reached a record high of 18,650 in the afternoon as the dust settled after Tuesday's election result.

The S&P 500 recorded a one month high at around 12pm, the exact time Hillary Clinton delivered her concession speech, and the Nasdaq index also strengthened.

The dollar clawed back its earlier two percent loss after being abandoned by investors who flocked to safe haven currencies including the Japanese Yen and the Euro overnight.

By 1pm on Wednesday, it had reached its highest gain since Brexit, climbing by 1.1 percent in a Bloomberg gauge.

While most other global markets were shaken by overnight losses, Russia was one of the few which showed soaring stock rates.

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The Dow index closed on a record high on Wednesday as the markets made a spectacular turnaround after initial uncertainty in the wake of Trump's win

Trading began shakily, with the Dow opening strong and dipping within its first hour before steadily increasing throughout the day

The dollar climbed by 1.1 percent in a gauge by Bloomberg on Wednesday, the highest since the Brexit result in June

The MICEX index was up by 40 points, 2.2 percent, as financiers told of hopes for improved relations between Russia and the US.

After a night of alarming market uncertainty and predicted financial turmoil, by Wednesday;

The US dollar had recovered its two percent loss against the Japanese Yen and Euro and was at its highest gain since Brexit

Stocks rose to record highs with the Dow index closing up by 1.4 percent

The Mexican peso suffered an 8 percent loss against the US dollar amid anticipation of Trump's harsh trade and immigration plans

Healthcare insurer stocks plummeted while biotech and pharmaceutical company stocks skyrocketed in response to his drastic Obamacare plans

Shares in firearms companies dropped - panic buying would have been a likely effect of a Clinton victory with pro-guns citizens eager to snap up weapons before her reforms, experts said

Trading began shakily, with each of the major stock indexes (the Dow, S&P 500 and Nasdaq) starting up before dipping.

They then began to claw their back back throughout the morning and calmed at around 10am, a slow turnaround after initially plummeting rates overnight.

The Mexican peso closed at a seven percent loss on Wednesday after sinking by 12 percent, an all time low, at around midnight when Trump's victory became apparent.

There was uncertainty at the start of the day as the Dow index opened up before dipping slightly and recovering again

Drugs and biotechnology companies including Pfizer skyrocketed, no longer facing Clinton's intended plans for harsh caps on the profiteering pharmaceutical industry.

Private prisons, banks, military contractors, coal and the Russian and Chinese markets were also winners.

Healthcare insurers, on the other hand, sank in anticipation of Trump's vowed changes to Obamacare which will see millions their lose affordable cover.

Smith and Wesson, one of the nation's largest firearms manufacturers, suffered losses of 11 percent and Sturm Ruger & Co was down 12.29 percent.

Experts attributed it to a lack of panic buying predicted in the event of a Clinton win with gun retailers earlier telling of a surge in sales when a Democrat victory was expected.

By 9.30am EST, gold and silver were still strong and the US dollar had recovered its earlier two percent decrease

In the first hour of trading on Wednesday, the Dow index fluctuated. It initially opened up before slipping and recovering to make gains

THE MARKETS REACT: WINNERS AND LOSERS OF TRUMP'S SHOCK VICTORY WINNERS The Russian stock market rose by 2.2 percent American manufacturing stocks soared on Wednesday with construction giants Caterpillar Inc among those best off after Trump's win. Stocks in the company rose by more than 6 percent while aircraft manufacturers Boeing saw theirs rise by 2 percent. JP Morgan Chase's stocks rose by more than four percent. Drugs and biotechnology stocks also rose. Pfizer, one of the country's largest pharmaceuticals companies, was up by 7 percent. Their stocks had fallen under the likelihood of a Clinton win as a result of her vow to clamp down on the profiteering industry. Corrections Corporations of America, which owns private prisons, was one of the largest winners. Its stocks rose by almost 50 percent - the highest on the S&P 500 index. Defense contractors including the Pentagon's largest contractor, Lockheed Martin, jumped as did banks including Bank of America. Russia's two major indexes showed some of the largest surges on Wednesday, an early indicator of Russian investors' hopes for improved relations with America through Trump. The American dollar clawed back from a 2 percent overnight loss to reach its highest gains since Brexit. A Bloomberg gauge places its growth at 1.1 percent on Wednesday lunchtime. The Japanese Yen rose by 0.45 percent and the British Pound was up by 0.33 percent. LOSERS The Mexican peso was the worst hit currency, dropping to an all-time low (-12%) overnight before closing at a seven percent drop on Wednesday. Despite the Yen enjoying a boost, the result had a chaotic impact on Japan's stock market which dropped an astonishing 900 points as wild bets were placed. Emergency meetings were held to counteract the drop after close of trading on Wednesday. Firearms dealers including giants Smith & Wesson and Sturm Ranger showed falling stocks. Experts attributed it to gun enthusiasts no longer feeling the need to to panic buy weapons as feared when a Clinton victory was likely. Private healthcare insurers also suffered. United Health was down 1.58 percent, an apparent response to Trump's plans to do away with Obamacare which currently gives millions access to affordable insurance. One of the worst hit was HealthSouth Corporation Warrant whose stocks fell by 48 percent. Advertisement

Within minutes of opening on Wednesday, the London FTSE 100 Index dropped by 146.8 points but recovered to a fall of just 27.3 points by lunchtime UK time. It closed at 4.35pm GMT on Wednesday up 1 percent.

The dollar fell 0.3 percent against sterling while investors sought out the safe haven of gold, which has risen by 2.5 percent to 1305.07 US dollars per ounce.

The German DAX and French CAC both fell on Tuesday but had recovered by Wednesday, each closing at more than 1 percent up.

Asian showed turbulent declines, with Japan's Nikkei reaching its -5 percent limit. Shanghai's Composite Index was down by 0.6 percent while Hong Kong was down by more than 2 percent.

Experts attributed the settling markets to Trump's victory speech, given at around 3am EST in Manhattan, in which he vowed to be a president for 'every citizen'.

Connor Campbell, Financial Analyst at Spreadex, said: 'A surprisingly presidential Trump victory speech – setting the bar incredibly low for what is expected from a recently elected candidate – seems to have reassured investors, the talk of infrastructure spending and a lack of usual vulgarity allowing for a relative aura of calm to encroach on the market.'

Experts attributed the settling markets to Trump's victory speech where he graciously commended Hillary Clinton and vowed to be a president for all citizens

Gold soared as investors looked for safe havens overnight while stock markets plummeted

President elect Donald Trump arrived home to the Trump Tower at 4.30am after giving his acceptance speech which appeared to reassure nervous markets following his shock victory

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Michael Hewson, chief markets analyst at CMC Markets agreed that the president-elect's victory speech probably eased market jitters.

He said: 'That the reaction seen thus far appears to have been much more tempered is probably due to the emollient and conciliatory nature of Trump's acceptance speech, and the fact that there was always that nagging doubt that the pollsters may well be wrong.'

Remo Fritschi, of ADS Securities in London admitted the markets will react positively to a clear winner.

'There's scope to applaud the fact that the opening bell will come with the certainty of who the next president will be, but given the lack of detail on an economic policy agenda, investors will unsurprisingly still be feeling wary.'

During his election campaign, Trump threatened to tear up trade agreements and repatriate jobs to the United States.

In recent days, the markets, reassured by the polls, believed Hillary Clinton would replace Barack Obama in January. But as the amount of red swept across the US electoral college map this morning, the markets reacted in shock.

Futures on the Dow Jones Index initially dropped by 800 points. In the hours before they opened, they had dropped to 300 points.

Craig Erlam, senior market analyst at OANDA said the overnight turmoil had been a 'bloodbath'.

The FTSE in London opened at 3am EST, ten minutes after his speech, and plunged by two percent as it reacted to Trump's victory with $40bn wiped off stocks in seconds.

The market regained much of its lost ground as traders considered the impact of a Trump presidency. By closing it displayed a five day high.

Tokyo stock markets reacted with shock to the prospect of a Trump presidency

Traders across Europe reacted with caution following the shock Trump victory and were down overnight but recovered by the end of trading

By the end of trading on Wednesday, the FTSE 100 was up 1 percent after a knee-jerk slump following the result

Trump has also threatened to impose trade barriers to block imports from countries such as Mexico and China.

The Mexican peso - which was battered by Trump's anti-immigrant rhetoric earlier in the campaign - hit a record low against the dollar.

The greenback soared to 20.7128 pesos, around its highest-ever point and about 12 percent up on earlier levels, before paring back slightly.

Trump's anti-Mexican promises have included a pledge to remove undocumented immigrants, build a border wall and tear up a trade deal.

Mexico's Finance Minister Jose Antonio Meade and central bank chief Agustin Carstens will address the media later in the day to outline actions after the peso's losses. However, Russia welcomed the news of Trump's election.

Kirill Dmitiev, head of Russia's sovereign wealth fund said: 'A less confrontational US foreign policy will unlock major opportunities for joint (Russia-U.S.) trade and investment.

Dmitriev said he believed financial markets would recover quickly 'just as they did after the Brexit vote'.

Financial markets reacted violently to the results, with S&P futures rising as much as 0.8 percent and falling more than 3 percent at one point overnight

Nasdaq 100 e-minis were down 139.5 points, or 2.9 percent, on volume of 92,108 contracts, and Dow e-minis were down 458 points, or 2.5 percent, with 127,944 contracts changing hands as the result was unclear at 10.56 pm EST on Tuesday

Yet Trump's protectionist stance has not been welcomed internationally. Germany's engineering industry association warned Donald Trump on Wednesday not to enforce protectionist trade measures he promised during his presidential election campaign, saying it would hurt the US economy as well as German exports.

Thilo Brodtmann said: 'If the world's biggest economy follows a protectionist course, its effects will be felt around the world. We can only hope that his words are not followed by corresponding deeds.'

The United States overtook China last year as Germany's biggest export market for capital goods, with exports worth almost $19 billion.

The European Central Bank called for calm this morning following Trump's shock victory.

Board member Peter Praet said it was too early to form an opinion on the impact. 'Usually what we do is look through volatility of course for the first days so we have to be a bit patient and see how things evolve. All communications on monetary policy will not change now as a result. We have to be calm, calmer than the markets.'

Japanese officials were preparing to intervene after investors sought to buy the yen and move their money into a safe haven until market stability returns.

Masatsugu Asakawa, vice finance minister for international affairs, said he was watching exchange-rate moves with great interest as they were 'very rough' and speculative.

He said: 'If speculative moves continue, we will take any necessary step.'

At close of business, both Hong Kong and Shanghai stock markets finished down as a result of Trump's decisive victory.

The Hang Seng Index dived 2.16 percent, or 494.28 points, to end at 22,415.19.

The benchmark Shanghai Composite Index fell 0.62 percent or 19.52 points, to 3,128.37 while the Shenzhen Composite Index, which tracks stocks on China's second exchange, slumped 0.58 percent, or 11.97 points, to 2,068.47.

Michael Purves, chief global strategist at Weeden & Co said: 'He's campaigned on three sort of core pillars - immigration, trade barriers and helping manufacturing get restored. He hasn't really articulated a clear plan and he is a volatile messenger.

'You don't know whether he is going to carry through with that.'

Jack Ablin, chief investment officer at BMO Private Bank in Chicago, forecast US stocks could drop as much as 10 percent over the next 10 sessions.

He said: 'Foreign markets, particularly emerging markets, would take most of the brunt. These are markets that rely more on selling to us than us selling to them.'

Market mayhem could also prevent the US Federal Reserve from raising interest rates as expected in December, and force other central banks to ease policy further.

Wall Street had banked on a Clinton victory, with the markets going in to a tailspin as Trump's victory became clear overnight

The price of crude oil fell while gold, a save haven investment in times of adversity, has increased.

Bob Takai, president at Sumitomo Corp Global Research in Tokyo said: 'This is deja vu of the Brexit moment, very worrying.'

Fawad Razaqzada, market analyst at Forex.com said: 'Speculators are in a panic mode ... Fears that Donald Trump was going to win the election saw risk-sensitive assets drop faster than Hillary Clinton's hopes of becoming the next U.S. president overnight.'

Jameel Ahmad, vice president of market research at trading platform and research firm FXTM claimed: 'Investors moved into complete 'risk off' mode ... Trump winning would have negative consequences on the price of oil. The threat of growth forecasts being downgraded at least over the short-term due to investor uncertainty in theory weakens demand for commodities like oil.'

As the chance of a Trump upset grew, global markets plunged, with some losses eclipsing the carnage seen after Britain's shock vote to leave the European Union in late June.

Daniel Alpert, managing partner at Westwood Capital LLC in New York said: 'The markets will tank and then, those around Trump who have reasonable minds will script him with some pablum for the markets and calm them.

'But that is not the issue. The issue is that he cannot fulfill the goals of those who are in his crazy inner circle and, at the same time, truly address the interests of those who have risen up against the Washington consensus.'

As the prospect of a Trump victory increased, the dollar, Mexican peso and crude oil, all plunged in value, with trillions of dollars wiped from financial markets.

World financial markets will watch closely the impact of last night's events on the New York stock exchange.

Markets across Asia reported heavy trading as investors sought to find safe refuge

Investors had conditioned themselves for a Clinton victory which never happened

David Kotok, Chairman and Chief Investment Officer, Cumberland Advisors, in Florida said: 'If Trump wins, we see the S&P falling to about 2,000 initially. Equities and the economy are all about confidence, which would be fragile... the path for equities should be driven by Trump, (Republican) leadership, the Fed and data - and whether they engender confidence, or not.'

The Dow futures have plunged 800 points, as the US dollar plummets and the Mexican peso plunges to an all time low.

'The Mexican peso has been hit hardest, it's been the biggest casualty,' Neil Shearing, chief emerging market economist at Capital Economics, told CNN Money.

One dollar equaled 20.33 pesos by late Tuesday evening. It has never traded at that level before.

It's believed that the value of the pesos could fall further by Wednesday morning, forcing Mexico's central bank to call an emergency meeting, and hike interest rates 1 percent to 2 percent, CNN reported.

The US stock index futures tumbled in choppy trade as battleground states stoked bets that Trump could win the presidential election.

Australian shares reacted badly to the prospect of Donald Trump's victory this morning

Nervous traders sought safe havens in gold and foreign currency overnight as Trump clinched victory

Investors reacted nervously as Trump crept towards victory overnight, putting their money in safe havens such as foreign currency and gold.

Financial markets reacted violently to the preliminary results, with S&P futures rising as much as 0.8 percent and falling more than 5 percent just before midnight.

At 9.43pm, S&P 500 e-minis were down 65 points, or 3.04 percent, with 719,267 contracts changing hands.

Mexican Peso

The Mexican peso slumped 10 percent versus the US dollar to near historic lows hit in September.

It was last down more than 7 percent, near 19.7 to the dollar, after earlier touching 18.1475, its strongest level since August 6.

Euro/Pound

The euro jumped 2.5 percent to $1.1300. The pound was up 1.3 percent at $1.2545.

Canadian dollar

The Canadian dollar fell to an eight-month low of $1.3525 Cdn per dollar.

Australian dollar

The Australian dollar fell 1.8 percent to $0.7624. The Aussie sank more than five percent to 77.50 yen, suffering its deepest intraday loss since the June Brexit referendum.

Japan's Market

Share benchmarks are tumbling across Asia after Trump gained the lead in electoral votes.

Japan's Nikkei 225 index dropped 2.4 percent to 16,777.85 as the US dollar sank against the Japanese yen, a trend that would be unfavorable to exporters.

The dollar shed 3 percent to 102.02 yen.

'No one in the market expected the results that we're seeing so far,' Kaneo Ogino, director at foreign exchange research firm Global-info Co in Tokyo told CBC.

Hong Kong

Hong Kong's Hang Seng plunged 1.7 percent to 22,514.70.

South Korea

The country's Kospi index fell 1.4 percent to 1,976.49 and Australia's S&P ASX/200 lost 1.2 percent to 5,196.70.

Commodity Markets

In commodity markets, gold climbed 2.8 percent to $1,312 an ounce as the dollar slid.

Oil turned tail on concerns over the global economic outlook, with U.S. crude shedding $1.34 to $43.63 a barrel, while Brent fell $1.24 to $44.80.

In commodity markets, gold (left) climbed 2.8 percent to $1,312 an ounce as the dollar slid. International Brent (right) crude futures were down 3 percent at $44.68 a barrel

EUROPEAN STOCKS PLUNGE AS THE CONTINENT WAKES UP TO THE REALITY OF A TRUMP PRESIDENCY European stock futures fell sharply on Wednesday and were poised for their worst day since the Brexit vote in the UK as global markets were left stunned by the reality of Republican candidate and political outsider Donald Trump becoming the next US President. Futures for the Euro STOXX 50 fell 4.2 percent, and futures for the STOXX 600 were down 4.1 percent. Futures for the FTSE, DAX and CAC were down 3.3-3.9 percent lower. Republican Donald Trump edged closer to winning the White House with a series of shocking wins in key states such as Florida and Ohio, rattling world markets that had expected Democrat Hillary Clinton to defeat the political outsider in Tuesday's US election. Analysts said that markets had been positioned for a Clinton win, and that substantial uncertainty over Trump's policy positions and the impact of his views on areas like trade were spooking markets. Rony Claeys, senior strategist at KBC Asset Management said: 'A Trump presidency is not good news in itself: US isolationism and protectionism is bad news for trade and potentially for economic growth. 'We do not really know what his policies will be (his plans were too vague or too contradictory) so we have increased uncertainty.' They returned to steadiness by the end of trading, with the UK, French and German exchanges all closing with positive averages. Advertisement

Clinton supporters were in tears as they continued to watch the election poll disaster



