Global Markets, U.S. Dollar Slide As Trump Wins Election

Investors fear Trump’s victory could cause global economic and trade turmoil and years of policy unpredictability. 

Global stock markets and the U.S. dollar slipped sharply on news that Republican candidate Donald Trump has been elected as the 45th president of the United States, while U.S. stocks opened broadly lower on Wall Street.

Investors reportedly fear Trump's surprise victory could cause global economic and trade turmoil, and years of policy unpredictability.

European stocks tumbled in opening deals on November 9 after Trump, who has vowed to buck the political establishment, beat Democratic rival Hillary Clinton, who has served in numerous public posts including in the U.S. Senate and as secretary of state.

U.S. stock futures dived 5 percent at one point, worse than the early fallout from Britain's largely unanticipated decision to leave the European Union in the so-called Brexit vote in June.

Wall Street stock index futures were down by as much as 3 percent but a sharp dip at the opening of trading in New York on November 9 turned to a slight decline as trading continued..

The U.S. dollar went into a tailspin against the yen and euro, which spiked by 1.3 percent against the U.S. currency. Oil prices plunged by over 4 percent to $43.17 a barrel.

Tokyo stocks plummeted by nearly 5 percent in a half day of trading on November 9 while Hong Kong indexes dived by 3.3 percent and Seoul stocks plunged 2.8 percent.

Trump campaigned against free-trade deals like NAFTA and the more recently signed Trans-Pacific Partnership, suggested taxing imports from countries like China and Mexico, and touted building a wall on the southern border to block illegal immigration that the Mexican government would pay for.

Running counter to falls in global financial markets, Russian stocks rose amid apparent perceptions that Trump could ease some of the damage in relations with Moscow. Russia's dollar-denominated RTS index gained 1.2 percent, while the ruble-denominated Micex went up 1.0 percent.

Perhaps due to Trump's pledge to build a "beautiful wall" between the United States and Mexico if he wins the presidency, the Mexican peso has been especially battered, falling to a record low against the dollar.

Risk-averse investors reportedly viewed the prospect of a Clinton administration's policies as mostly a continuation of the "status quo" established by President Barack Obama.

The Republicans also retained control of both houses of the U.S. Congress, potentially giving Trump considerable leverage once he is sworn into office on January 20.

With reporting by Reuters and AFP