Fears of markets crash over Donald Trump’s presidential election win have receded following the president-elect acceptance speech which calmed nerves.
The New York stock market expected to fall when trading was to begin in the early hours of Wednesday changed course. Reports indicate that markets retreated from sharp losses after traders said Trump’s acceptance speech was balanced and conciliatory.
The US dollar has recouped its overnight losses, and just hit a one-week high against the euro, Britain’s FTSE 100 has recovered from its early selloff and is now slightly higher
Before Trump win, the Mexican Peso, which has become the gauge for sentiment on the election, plunged by more than 13 percent to an all-time low against the dollar, its biggest daily fall in two decades, reports the Telegraph UK.
“The US dollar also took a battering, plunging 2.6 percent to $102.350 against the Japanese Yen, while the greenback lost 1.6 percent against the Swiss franc. Meanwhile, the euro rallied to its highest level in two-months, climbing 1.8percent to $1.1225.”
Investors had piled into safe-haven assets as early results indicated the possibility of a Trump win. “Gold enjoyed its biggest daily rally since the Brexit vote, as investors shunned risky assets after markets priced-in a Clinton victory. Stock markets and dollar plunge as Trump heads to victory.
In Asian trading, Japan’s Nikkei surrendered 5.4 percent, while the Shanghai Composite index dropped 0.6percent. European bourses also faltered, with the FTSE 100 opening down 2.1 percent, Frankfurt’s DAX shed almost 3percent and the CAC in Paris dropped 2.8percent.
However, the market retreated from sharp losses after traders said Trump’s acceptance speech was balanced and conciliatory.
Kathleen Brooks, of City Index, said in the report: “The first speech by President elect Trump has had a calming effect on the markets.” This suggests that a win for Trump is not yet America’s Brexit moment.”
Part of Trump speech reads: “Now it is time for America to bind the wounds of division, have to get together. To all Republicans and Democrats and independents across this nation, I say it is time for us to come together as one united people.
It is time. I pledge to every citizen of our land that I will be President for all of Americans, and this is so important to me. For those who have chosen not to support me in the past, of which there were a few people, I’m reaching out to you for your guidance and your help so that we can work together and unify our great country.
Working together, we will begin the urgent task of rebuilding our nation and renewing the American dream. I’ve spent my entire life in business, looking at the untapped potential in projects and in people all over the world.
“We are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools, hospitals. We’re going to rebuild our infrastructure, which will become, by the way, second to none. And we will put millions of our people to work as we rebuild it.
“We have a great economic plan. We will double our growth and have the strongest economy anywhere in the world. At the same time, we will get along with all other nations willing to get along with us. We will be. We will have great relationships. We expect to have great, great relationships.
“No dream is too big, no challenge is too great. Nothing we want for our future is beyond our reach.
“America will no longer settle for anything less than the best. We must reclaim our country’s destiny and dream big and bold and daring. We have to do that. We’re going to dream of things for our country, and beautiful things and successful things once again.”
In Nigeria, there were fears that a Trump win could spark discrimination against Nigerians working in the United States. Recounting an experience he had during a rally in Alaska, Trump had accused Nigerian citizens of stealing American jobs.
“We need to get the Africans out. Not the blacks, the Africans. Especially the Nigerians. They’re everywhere. I went for a rally in Alaska and met just one African in the entire state. Where was he from? Nigeria! He’s in Alaska taking our jobs,” Trump said at a rally during the period of electioneering.
“Why can’t they stay in their own country? Why? I’ll tell you why. Because they are corrupt. Their governments are so corrupt, they rob the people blind and bring it all here to spend. And their people run away and come down here and take our jobs!
“We can’t have that! If I become President, we’ll send them all home. We’ll build a wall at the Atlantic Shore. Then maybe we’ll re-colonize them because obviously they did not learn a damn thing from the British, Trump concluded.
But in a drastic reversal, Trump spoke of binding the wounds, bringing people together and mending the cracks which currently exist in America’s economy and society.
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