Prospects of Trump presidency unsettle markets   10 Nov 2016

Article - BusinessDesk

BusinessDesk via sendgrid.me
4:06 PM (16 hours ago)

to editor
Wednesday 09 November 2016 04:06 PM

Yen, gold gain, stocks drop as prospects of Trump presidency unsettle markets

By Sophie Boot

Nov. 9 (BusinessDesk) - The yen strengthened and gold rose, while stock markets fell as US presidential election results showed the possibility of a win by Donald Trump, sending investors to so-called safe haven assets.

The S&P/NZX 50 Index fell 2.4 percent to 6,732.41 at 4.05pm, having traded higher most of the day. Stocks fell across Asia dropped this afternoon with the Nikkei 225 Index down 2.2 percent, the Hang Seng falling 1.7 percent, and the S&P/ASX 200 Index 1.7 percent lower. The Mexican peso had its biggest one-day drop since 1994's Tequila crisis, falling around 8 percent against the US dollar, on the prospects of a US president who has threatened to build a security wall to keep Mexicans out.

Clinton is seen as the safe candidate, while Trump's trade policy and volatility create uncertainty which investors hate. The New York Times most recently forecast Republican candidate Donald Trump has a 68 percent chance of winning the presidency, having swapped from preferring Democratic presidential candidate Hillary Clinton's chances just before 3:30pm New Zealand time.

Safe-haven global currencies such as the Japanese yen strengthened against the US dollar this afternoon. The yen strengthened to a month-high of 102.01 against the dollar while spot gold climbed 2.3 percent. New Zealand two-year swaps were down 5 basis points to 2.15 percent while 10-year swaps are unchanged at 2.92.

Global markets became increasingly unsettled last month at the prospect of Trump succeeding in his bid for the White House, following a letter from FBI director James Comey on Oct. 29 announcing the FBI was reviewing emails belonging to Clinton found in the unrelated investigation into Anthony Weiner. The Chicago Board Options Exchange Volatility Index, or VIX, known as Wall Street's fear gauge, rose to a five-month high at its last trade on Nov. 4.

On Monday morning local time, the FBI confirmed no criminal charges are warranted against Clinton, pushing markets higher and causing the VIX to drop 16.9 percent, its biggest fall since June.

(BusinessDesk)
ends

Add a comment

News

Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students

29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more

New Zealand reaffirms support for Flight MH17 judicial process

7 Mar 2020 News By Rt HON WINSTON PETERS
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more

Business

NZ Government's Economic package to fight COVID-19

17 Mar 2020 Business News By RT HON JACINDA ARDERN
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more

NZ Government announces aviation relief package

19 Mar 2020 Business News By Hon Phil Twyford
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more

Living

Diversity was Key at New Zealand Trade Tasting in London

6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall. It was the first... more

Kiwi author stuns Behind the Butterfly Gate

12 Jan 2022 Arts By Charlotte Everett
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...  New Zealand writer Merryn Corcoran’s... more

Property

Fairer rules for tenants and landlords

17 Nov 2019 Property By Minister Kris Faafoi
17 NOVEMBER 2019 The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more

New Zealand Government will not implement a Capital Gains Tax

17 Apr 2019 Property By RT HON JACINDA ARDERN
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more

Migration

Boosting border security with electronic travel authority – now over 500,000 issued

19 Nov 2019 Migration By Hon Iain Lees-Galloway
19 NOVEMBER 2019 We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more

Christchurch reinstated as refugee settlement location

18 Aug 2018 Migration
18 AUGUST 2018 HON IAIN LEES-GALLOWAY The announcement that Christchurch can once again be a settlement location for refugees... more

Travel

Gallipoli Anzac Day services cancelled

19 Mar 2020 Travel & Tourism By RT HON JACINDA ARDERN
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more

New Zealanders advised not to travel overseas

19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas more

Sport

The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners

27 Oct 2019 Cricket By Charlotte Everett
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more

PREVIEW: All Blacks v England semi-final

26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade First published on Werewolf The ghastly likes of Marine Le Pen in France and Geert ... more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome Well um.. on the bright side, there (probably)... more

Kiwi Success

Congratulations to Loder Cup winner

26 Sep 2018 People By Hon Eugenie Sage
25 SEPTEMBER 2018 The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more

Appointments to New Zealand National Commission for UNESCO

16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO HON JENNY SALESA Associate Education Minister Jenny Salesa is... more

Recruitment

Historic pay equity settlement for education support workers

14 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more

Historic pay equity settlement for education support workers

22 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more