Markets tumble as Trump wins

Donald Trump
Donald Trump

The shekel has gained against the dollar but the Tel Aviv Stock Exchange is holding firm.

Wall Street futures are down 5% while markets in Asia tumbled as US presidential candidate Donald Trump confounded the polls and pulled off a surprise victory in the US presidential elections. The Tokyo Stock Exchange's Nikkei Index is down 5.65% while Hong Kong's Hang Seng Index is down a more moderate 3% and the Australian stock market closed down 1.92%. Gold prices have soared as investors run for safe havens and the dollar lost 2.5% against the euro.

On the Israeli scene market traders were highly nervous ahead of opening of trading on the Tel Aviv Stock Exchange (TASE), but after the Tel Aviv 25 Index initially fell more than 2%, the market held firm and was even up 0.25% at 1404.98 points by 11am.

In inter-bank trading the shekel is strengthening against the dollar and weakening against the euro. The shekel-dollar exchange rate is down 0.73% from yesterday's representative rate at NIS 3.786/$, while the shekel-euro exchange rate is up 0.7% against the euro at NIS 4.242/€. Traders are now uncertain about a US Fed rate hike in December, which had been considered likely, and this reassessment is harming the US currency.

Published by Globes [online], Israel business news - www.globes-online.com - on November 9, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Donald Trump
Donald Trump
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