Morning Briefing: Trump slump!

Morning Briefing: Trump slump!

Morning Briefing: Trump slump! Trump slump!
World markets are reacting to the election of President Donald Trump and it’s mostly negative; gold being the outlier with gains of more than 2 per cent so far.

Asian markets slumped as the election result was announced with Tokyo’s Nikkei closing more than 5 per cent lower as the yen gained; the currency is viewed as a safer haven for investors. Seoul closed almost 3 per cent lower while Hong Kong and Sydney were off by around 2 per cent. Shanghai was down by a relatively small amount despite Trump’s rhetoric regarding its imports; data showed growth for consumer and producer prices.

European indexes are also trending lower, with Paris and Frankfurt leading the declines; London is flat. The Eurozone’s economic forecast is also in focus.

Wall Street and Toronto are expected to open lower.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 18,332.74 (+0.40 per cent) +0.51 per cent +2.36 per cent
TSX Composite 14,656.84 (+0.03 per cent) +0.62 per cent +8.71 per cent
 
Europe (at 4.30am ET)
UK FTSE 6,844.22 (+0.02 per cent) -2.84 per cent +8.72 per cent
German DAX 10,428.71 (-0.51 per cent) -0.59 per cent - 3.58 per cent
 
Asia (at close)
China CSI 300 3,353.05 (-0.54 per cent) +3.07 per cent -12.69 per cent
Japan Nikkei 16,251.54 (-5.36 per cent) -3.61 per cent -17.26 per cent
 
Other Data (at 2.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
46.01
(-0.07 per cent)
44.82
(-0.36 per cent)
1300.50
(+2.04 per cent)
U$0.7449
 
Aus. Dollar
U$0.7670

 
Fed may freeze rates following Trump election
The wide-held belief that the Fed will increase interest rates when it meets next month, may now be revised following the US election result. Market volatility will be carefully watched by the policymakers who may decide that conditions will not be conducive to a rate hike.

"It raises the odds that the Fed will not move in December," Mark Zandi, chief economist of Moody's Analytics told CNBC.

In his victory speech, Trump told supporters that the US economy is strong and pledged to double growth. Increased interest rates may not be part of that plan.