A wave of concern washed over the market, when it became clear that the republican Donald Trump won the presidential election in the united states. Asian stock markets collapsed with the dollar. Turbulence was dampened, however, when Trump held a victory speech with a focus on the one the united states.
In Asia, the traders prepared for a turbulent day of trading before the election results from the united states. Arkivbild.
the stockholm stock exchange was feared before the börsöppningen collapse. But when it was opened, the reduction was only 3.4 per cent, and at lunchtime have the OMXS-index recovered and is on a decline of 0.7 per cent – in line with the leading Europabörser.
the tokyo stock exchange closed earlier in the morning with a race on the 5.4 per cent and in the currency and fixed income markets, it was, at times, large turns – when investors began to hunt for safe investments in what is seen as a more uncertain future.
– By working together we will begin the urgent task to rebuild our country and renew the american dream, ” said Trump in his victory speech.
the bank’s chief economist Anna Breman writes in an analysis sees a great risk for the continued roller coaster ride in the market.
“We believe that the market uncertainty will remain, which makes it difficult for the (U.S. central bank) Federal Reserve to raise its key interest rate at the next räntemöte in december,” she writes.
Many analysts had expected, with a significantly harder downward correction on the stockholm stock exchange, among them SEB’s aktieschef Arvid Böhm, as the face of börsöppningen said count with a kursras on 8-to 10-percent in Stockholm the next few days.
the Companies listed on the stockholm stock exchange, compared with many other exchanges ‘ listed companies great exposure to global trade. Shares in the Stockholm traded with a risk premium, then it can easily occur local liquidity problems in the kronmarknaden when there will be market turbulence.
In the fixed income market, it was initially also down when the first vågmästarstaterna in the election went to the Trump. But even on the räntefronten came some recovery in the förmiddagshandeln.
the Commodity market has also recovered after a turbulent night, with a sharp drop in prices of crude oil and base metals and prislyft for gold, which is seen as a safe haven in times of uncertainty.
the Night of the turmoil in Asia took off at two o’clock, when the polling stations in several heavy vågmästarstater like Florida and Ohio closed. Panikstämning spread then as the results were counted together and it seemed all the harder to win for the Democratic party candidate, Hillary Clinton.
the Republicans also retains control of the senate and house of representatives of the united states congress, which gives Trump as president is a larger play space than what Barack Obama had for his second term.
Many economists see an increased uncertainty in the global economy, with Trump as president of the united states, with the risk of increased geopolitical tensions, and protectionism. There is also a concern for potential trade war between the united states and countries such as China and Mexico.
“This could change the playing field for the entire global economy,” says SEB’s chief economist Robert Bergqvist on a conference call.
“It’s traveling is also big question marks over Nato and U.S. commitments to the Nato alliance in the future,” he adds.
One of the many insecure cards in the future regarding the monetary policy, the US Federal Reserve will push with Trump in the White house, according to Bergqvist. He has at the same time difficult to get Trump’s program with the promises of tax cuts, deregulation, public infrastructure and protectionism that go together.
“I guess we have to live with quite a large uncertainty in the coming weeks,” says SEB’s chief economist Robert Bergqvist.
the Facts: Riotous in the foreign exchange market
The mexican currency, the peso collapsed by over 13 per cent when it became clear that republican Donald Trump would win the presidential election in the united states. Also, the US dollar came down unexpectedly a lot.
the downward Pressure on the peso is related to Trump during his campaign said it would tear up the free trade agreement with Mexico and that four-fifths of mexican exports go to just the united states.
the Dollar first fell unexpectedly sharply. The big case has its background in that the majority of the forecasters with Trump as the president of the united states, a completely new monetary policy position for the US Federal Reserve (Fed). The previously-expected u.s. styrräntehöjningen in december to be adopted now, don’t get rid of.
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