Asia Pacific has set the tone for what promises to be a dramatic day on the rest of the world’s financial markets. A Trump presidency seems likely to bring a level of uncertainty not seen since the collapse of Lehman Brothers in 2008. The main points are;
- Stocks have been battered throughout Asia Pacific with the Nikkei in Japan closing down 5.36%, Australia finishing down 1.92% and Hong Kong off 2.82% (still to close there).
- Wall Street could see its biggest ever fall when trading opens on Wednesday with futures pointing to a 800-point drop – more than 5%.
- The FTSE is on course to shed 250 points.
- One trader in London said it was “bigger than Brexit” for the markets
- The US dollar has sold off more than 3% against the Japanese yenas investors seek safe havens. Sterling and the Swiss franc were also up, as well as the euro.
- But the Mexican peso was a big loser – down 12.18% at 20.52.
- The prospect of a US rate rise has been slashed
- Gold has spiked almost 5% to $1,337.40
- Oil has fallen 4% on the US WTI benchmark while Brent crude is down 2.43%