Trump victory speech helps soothe market concerns
LONDON — Conciliatory comments from US President-elect Donald Trump in the aftermath of his stunning victory over Hillary Clinton helped global stock markets and the dollar trim their hefty losses on Wednesday.
Though uncertainty remains over Trump’s trade, immigration and geopolitical policies, investors appeared somewhat soothed by his victory speech, in which he praised Clinton and urged Americans to “come together as one united people” after a deeply divisive campaign.
In Europe, Germany’s DAX was down 0.9 percent at 10,384 while the FTSE 100 index of leading British shares was 0.2 percent lower at 6,832. US stocks are expected to open lower too, though by far less than earlier predicted. Dow futures are 1.3 percent lower at 18,057 while the broader S&P 500 futures were down 1.5 percent at 2,103.
“That the reaction seen thus far appears to have been much more tempered is probably due to the emollient and conciliatory nature of Trump’s acceptance speech, and the fact that there was always that nagging doubt that the pollsters may well be wrong,” said Michael Hewson, chief markets analyst at CMC Markets.
As Trump gained the lead in the electoral vote count, investors became increasingly uneasy and share prices tumbled in Asia, which were open during the election results. Dow futures were down 4 percent at one point. However, by the time Trump was confirmed the winner and made his speech, financial markets had steadied.
The dollar also recouped some ground, while assets that many investors search out at times of uncertainty, such as gold and the Swiss franc, came off earlier highs.
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