Trump wins US election: How the FTSE 100, gold and the currency markets reacted

The UK stock market has won back most of the initial losses it endured in the first half an hour of trading, as investors digest the news that Donald Trump is to become the 45th president of the United States.

In overnight trading, futures markets dived into the red when signs started to emerge that the Republican campaign had gained both the momentum and the upper hand.

Safe haven assets, including gold and the Japanese yen, spiked against a weakening US dollar, with currency traders taking fright over the uncertainty Trump's presidency will bring. The dollar had slipped 1.67 per cent against the yen as of 9.30am.

The yellow metal staged its biggest upward movement since Brexit, rising from to $1,269/oz to $1,332 in early trading – a rise of 4.7 per cent. By 9.30am the yellow metal was hovering just above $1,300.

The FTSE 100 dived into the red on the opening bell, declining 2.1 per cent in the first couple of minutes of trading.

But shortly after Trump’s victory speech, which brought a element of calm to the markets, the blue-chip index staged a comeback, winning back most of its losses. As of 9.30am the index was down just 0.13 per cent, to trade at 6833. The more domestically focused FTSE 250 was up 0.26 per cent, while the FTSE All-Share was down 0.08 per cent.

European stock markets, however, showed a sea of red, with the French Cac and the German Dax declining 1.2 per cent and 1 per cent  respectively.

The sharp falls across Europe mirror falls overnight in Asia: Japan's Nikkei 225 ended trading down 5 per cent, while China's Hang Seng index had dipped 2.3 per cent by the close.

UPDATE (AT 14:00)

As at 2pm this afternoon the FTSE 100 was trading flat, up 0.02 per cent to trade at 6844. European markets, including the French Cac and German Dax, were still in the red, both down 0.9 per cent.

America's S&P 500 opened the session flat, up 0.16 per cent to trade at 2143. The Dow Jones Industrial Average was also in the black, up 0.25 per cent.

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