The Asian stock market traded lower on 9th of November. The Shanghai Composite was down by 0.96 per cent. This occurred when the reports of Donald Trump, the republican candidate was performing better than it was expected during the Presidential elections. Although most of the pre-election polls had hinted that Democrat Hillary Clinton would lead the race, the early results on Tuesday proved out to be different.
Decline in the dollar value
Dow Jones mini was down by 3.36 per cent. The same was the case with S&P which was down by 82.50 points or by 3.86 per cent. The US dollar was also impacted with the progression in the results and it declined against the Swiss franc, euro and yen. The dollar fell by 3.5 per cent against yen which was the largest decline since the Brexit vote.
Decline in oil prices
There was a decline in oil prices as traders put forward their opinion that Trump’s triumph would not prove to be great for the world trade. Brent Crude was trading at $44.41 per barrel. The WTI crude oil prices were down at $43.10 per barrel. The MD of FX strategy for BK Asset Management, Kathy Lien stated that no major volatility in the market is elicited by the US elections. However, the problem with 2016 elections is that a major segment of the market participants believe that Trump’s victory is far away from being realistic. The traders are bailing out of the US assets for protecting their portfolios.
A massive impact has been noted in the market segment with Donald Trump winning the US presidential elections. His moves may have severe impact on the segment considering that the statements made by him during the rallies do not sound appealing to the traders.
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