Financial markets cratered late Tuesday as Donald Trump moved toward and secured a massive upset victory in the US presidential election.
US and European stock futures and benchmarks in Asia are sliding, and the Mexican peso has crashed.
The way investors see it, Trump and his economic positions are less predictable than Hillary Clinton’s and do not always follow Republican party orthodoxy. And so he is perceived as more of a political risk.
The Mexican peso is down by about 12.9% at 20.6842 per dollar around 11:50 p.m. ET. By comparison, before election data starting rolling out, the currency closed the day up by about 1.3% against the dollar.
US stock futures are plunging as well. As of 11:39 p.m. ET on Tuesday, Dow futures were down by 753 points — about 4.13%. If this plunge holds, it sets the market up for an ugly start to trading on Wednesday.
Gold is up by 3.8% at $49.50 an ounce as of 11:42 p.m. ET at $1,324 an ounce. By contrast, in early evening trade, gold fell by $6 per ounce; and it is $30 per ounce above its high during trading on Tuesday.
US Treasurys also soared, with the 10-year yield falling more than 11 basis points to 1.736%.
Asian stocks are getting crushed. Here’s a rundown from Business Insider Australia:
AUSTRALIA: ASX 200: -2.1%
JAPAN: Nikkei 225: -6.0%
CHINA: Shanghai Composite: -1.0%
HONG KONG: Hang Seng: -3.0%
None of this is good news.
Fasten your seat belts kids, the ride is about to get very bumpy.