2016 U.S. ELECTIONS – Dow Futures Drop Over 750 Pts on Trump Win
Dow Jones futures were down by more than 750 pts late Tuesday night, as United States presidential poll results showed Republican front-runner Donald Trump enjoying an early advantage in a number of key states.
The Dow’s drop could even overshadow the Brexit controversy that jolted currency markets last June.
Investors started to pour their investment into safe havens as of Tuesday night, reviving the gains that bonds and gold had earned over the weekend before Federal Bureau of Investigation Director James Comey cleared Democratic presidential candidate Hillary Clinton of criminal liabilities in her use of a private email server.
In forex, the Mexican currency, considered a bellwether of the U.S. presidential polls, continued to slump, reaching a record low versus the U.S. greenback.
The Mexican peso fell by around 10 pct as traders got worried by the likelihood of a Trump victory, a virtual unknown in the world economic arena but who has vowed to impose a tight policy on Mexican exports and erect a wall across the whole stretch of the Mexican-United States border.
According to New York-based Nomura Securities analyst Benneth Birbar, “This development is a historic event. I do not remember such an extreme forecast on the U.S. economy that could be so dismal to the Mexican economy.”
With over two-thirds of the U.S. already posting electoral results that showed a sweeping victory for Trump, sovereign bonds skyrocketted, while gold rose to its biggest price point in more than 30 days, registering $1,316 per ounce.
Meanwhile, a good number of bitcoin players around the globe are as jittery as the two US presidential candidates awaiting the final results. These bitcoin investors believe that a Trump victory would be a boon to the digital currency market, although only for the short term, but then they add that would be good enough.