The Republican party has successfully secured a majority in the US Senate, the US House and saw their candidate Donald Trump being voted in as President Elect in the 2016 US Election. While European Stock markets fell in pre-trading hours, as Trumps likely victory slowly became clear, the new President Elect’s speech this morning installed new confidence, leading to an easing of the initial upset.
Donald Trump wins US Election
Donald Trump has officially secured a majority of votes in the 2016 US Presidential Election. Having won the swing state Florida, as well as the usual Democrats strong-hold Pennsylvania, Trump went ahead of Clinton in the early morning hours and became the next US President Elect with a total of 58,844,024 votes.
The Republican Party also celebrated a victory in the US Senate as well as the US House, securing a majority of seats in both top US political institutions.
European Stock Market upset remains minor
European Stock Markets dropped initially during the early morning hours. FTSE100 futures fell as much as 4.5% in pre-market trading.
However, Trump’s rather modest and ‘reasonable’ victory speech proved reassuring to investors. European Stock markets recovered a great part of their losses in the first hour after market open and have since only fallen modestly.
The FTSE 100 is currently loosing 0.7% on the day.
The CAC 40 index is down 1.68%.
Germany’s DAX has lost 1.56% since market open.
Gold is the real winner
Gold and other precious metals rallied in the early morning hours as investors fled to save haven assets. Since then gold and silver prices have retracted only modestly.
The gold price currently stands at US$ 1,302.50 per ounce, up 2.2%.
Market volatility remains short lived
While the early morning hours saw some upset in the stock and commodity markets, first evidence shows that market volatility due to Trump’s victory may only be short lived.
His next moves, coming speeches and developments will still be watched closely.
