The recent unexpected victory of US republican candidate Donald Trump at the Presidential elections has sent the world’s major stock markets tumbling. Troubled about the economic impact of the billionaire’s arrival at the head of the White House, US markets started plunging as preliminary results were being released, showing that Trump was ahead of her democrat opponent, Hillary Clinton.

Around 6:30 a.m, S&P500 broad-based index slumped 5.01% while Nasdaq technology index fell by 5.08%. As for the London Stock Exchange, its index slumped by nearly 5%, on future markets.

Asian markets also suffered the result. The Nikkei index of the Tokyo stock market slumped by close to 6% on Wednesday, less than an hour before close. The benchmark Nikkei 225 index plummeted by more than 1,025pt (-5.97%) to 16145.94pts, and as a result Bank of Japan and the Minister of finances of the country called an emergency.

Sydney for its part fell more than 3% at mid-day, just like Hong Kong. Indian markets slumped by 6%.

Donald Trump, who always defended protectionism, said he would renegotiate the North American Free Trade Agreement (NAFTA) and pull the US out of the Trans-Pacific Partnership (TPP).

Currencies also slumped significantly. Mexican currency, the Peso, fell to its lowest to the dollar, in face of threats by Trump to review free trade agreements between the US and Mexico. The dollar, for its part, slipped by nearly 1.6% to the euro and by about 3.7% to the yen.

As global markets experience meltdown, investors turned to the bond market, and especially to the German debt which are safe.

Gold, also a refuge, soared in value to $1302.85/oz, from $1268.30, early this morning.

In regards to currencies, the Swiss franc, a refuge value by excellence, surged to the dollar Wednesday morning.

Walid Khefifi