WASHINGTON (Sputnik) — The markets in the United States and around the world were rumbled Wednesday by news of Republican nominee Donald Trump's lead over his rival Hillary Clinton in US presidential elections and his consequent victory.
Trump led a surprising surge in Tuesday's election, surpassing Clinton in Electoral College votes and finally reaching the 270 needed to win the election. Clinton has reportedly called Trump to concede victory while newly-elected Vice President Mike Pence hailed Trump as the new president.
US stock index futures were down around 5 percent in early Wednesday trading, with Dow Jones 30 Futures falling some 800 points.
Futures for the S&P 500 stock index reached a multi-month minimum of 2028.50 points. The Nasdaq futures index and the DJIA index both fell around 5 percent as well.
Trading was halted early on Wednesday as circuit breaker mechanisms kicked in, preventing further falls and limiting selloffs.
The yield on 30-year US Treasuries decreased from over 2.6 percent to 2.54 percent before rising to 2.7 percent later in the day when the election outcome became more certain.
Jolts were also felt throughout the world, especially in Asia, where the Tokyo Stock Exchange Nikkei index went down over 5 percent.
China's Shanghai Composite Index started trading over 1 percent below Tuesday's closure before somewhat recovering to around —0.6 percent. The Shenzhen Composite Index is also down over 0.6 percent. The Hang Seng fell over 2 percent.
European stock exchanges were largely calm, while Russian stock markets opened up to 1.38 percent in the red on Wednesday morning.
The slump may well prove to be temporary as with Brexit, when stock markets recovered relatively quickly following surprise news of the UK referendum outcome.
The Mexican peso was the first to take a hit, losing 13 percent against the US dollar after staging the biggest rally in years. The currency is trading at 20.7 peso per dollar with experts forecasting a fall as low as 21.5 peso per dollar in case of Trump's victory.
During his election campaign, Trump vowed to stem illegal immigration from Mexico by building a wall on the US border with the country as well as making Mexico pay for it.
The US dollar itself was in the red against other currencies, falling over 0.8 percent against the euro, almost 2 percent against the yen and over 0.15 percent against the yuan.