World markets plunge as Trump leads polls

The US Dollar plummeted against the Yen and Euro while the Mexican Peso also fell to a record low with gold gaining more than five percent.

Photo by: Reuters
Photo by: Reuters

The United States Dollar and stock markets around tumbled on Wednesday as US Republican nominee Donald Trump looked on course to win the race for the White House.

The United States Dollar and stock markets around tumbled on Wednesday as US Republican nominee Donald Trump looked on course to win the race for the White House.

Investors’ initial confidence that Democratic candidate Hillary Clinton would win the US election was wiped out as results from key states of Ohio, North Carolina and Florida showed Trump in a clear lead.

Clinton is considered by many investors to be a safer bet than Trump, who is seen as a loose cannon with policies.

Many fear the firebrand tycoon could wreck the world's number-one economy.

The Dollar plummeted against the Yen and Euro while the Mexican Peso also fell to a record low with gold gaining more than five percent.

"It’s been a bloodbath in the markets over the last few hours with the Mexican Peso suffering particularly badly as Trump edges ever closer to the White House," said Craig Erlam, senior market analyst at Oanda.

World Markets

Stock markets in Tokyo collapsed 5.5 percent by the break while Hong Kong fell almost three percent and Shanghai sank by 1.3 percent.

Stocks at Sydney lost more than two percent, Seoul shed three percent and Singapore dived 1.2 percent.

The Sensex on the Bombay Stock Exchange was more than two percent down.

The index initially plummeted more than six percent as Trump's impressive performance was mixed with news that high denomination notes were being pulled from circulation as part of a crackdown on tax evasion.

Wellington plunged 3.3 percent while there were also losses of more than two percent for Taipei. Jakarta, Manila and Bangkok were all down more than one percent.

Futures on the S&P 500 and Nasdaq on Wall Street were more than five percent down while those on the Dow were off four percent.

Oil Take Hit

US West Texas Intermediate crude futures fell to a session low of $43.07 per barrel, down more than 4 percent from their last close and their lowest since September, before inching back to $43.68 a barrel at 0525 GMT.

International Brent crude futures were down 2.5 percent at $44.87 a barrel.

Key Figures As Of 0510 GMT

Tokyo - Nikkei 225: DOWN 5.5 percent at 16,222.02

Hong Kong - Hang Seng: DOWN 2.8 percent at 22,262.74 (break)

Shanghai - Composite: DOWN 1.3 percent at 3,106.23 (break)

Dollar/Mexican peso: UP at 20.7135 from 18.6152 pesos late Tuesday

Pound/dollar: UP at $1.2581 from $1.2378 Tuesday

Euro/pound: UP at 89.30 pence from 89.03 pence

Euro/dollar: UP at $1.1245 from $1.1020

Dollar/yen: DOWN at 101.20 yen from 105.14 yen

Oil - West Texas Intermediate: DOWN $1.56 at $43.42 per barrel

Oil - Brent North Sea: DOWN $1.41 at $44.63 per barrel

New York - Dow: UP 0.4 percent at 18,332.43 (close)

London - FTSE 100: UP 0.5 percent at 6,843.13 (close)

Source: 
TRTWorld and agencies