Foreign Markets Tumble On News Of U.S. Election Results
When you are the biggest and most influential economy in the world you are constantly being watched. Investors from around the globe were keeping a very cautious eye on the political scene as the Presidential election in the United States unfolded yesterday.
Early there had been reports that markets in the U.S. were showing upward trends as the polls seem to indicate that a victory by former Secretary of State Hillary Clinton was becoming a certainty. Many analysts suggested that investors felt more comfortable with Clinton leading the country than Mr. Trump.
At first, the markets in Asia and the far east were following the trend of the U.S markets. They were trending upward based on projections of a Democratic victory. A Clinton win did not materialize and the first financial markets to feel the effects of a Trump win were the overseas markets in Japan and Europe. In Japan,the Nikkei Index lost 4.2% of its value in just a few hours.
As of early this morning, the British and European markets were just beginning to open. Many financial pundits believe that a Trump presidency will bring about a lot of uncertainty in the marketplace.
Those who follow the markets will take some solace in knowing that after Mr. Trump addressed the world early this morning that seemed to calm fears across the financial landscape. It will be quite a wild ride on the U.S. stock market this morning. Hold on to your 401K because you could be a big winner or a big loser.