The US dollar exchange rate sank deep and the shares fell sharply, as investors confronted the real possibility of Republican candidate Donald Trump to be the next president of the United States. The European shares followed the decline in other markets, their value fell by 4% as investors turned to safer assets amid serious lead Trump. The analysts are worried that a possible victory Trump will cause global economic and trade turbulence and uncertainty in the US policy.
Amid the chaos of the stock markets, the government bonds, Japanese yen, EUR and gold reported growth. However, the Mexican peso register free fall to record levels. The exchange rate of the currency tumbled more than 10% against the USD.
US stocks fell by 5%, which is even worse performance after the Brexit vote at the end of June, when the stock markets lost trillions of dollars. The US 10-year bonds fell with 14 points, which is also the biggest drop since the British referendum.
The European currency increased by 2.20% against the US dollar to 1.1268 EUR/USD, while the Japanese yen jumped even more by 3.20% against the US dollar to 101.89 JPY/USD. The US currency recorded a drop of more than 2% against the Swiss franc.
Gold jumped nearly 5 percent on Wednesday to its strongest in six weeks as investors sought safe havens after the political uncertainty and the election of Donald Trump for president of the United States. It marked gold’s biggest single-day gain since June 24 when it rose as much as 8% when Britain decided to leave the European Union. Now the gold price rose by 4.8% for single day during the elections in USA.
Just a few minutes ago, the Republican candidate Donald Trump won the presidential election is USA and became the 45th US President. Probably the rally will continue during the whole day.