Stock prices steady after Trump election prompts dramatic drop

President-Elect Donald Trump (R) caused a bit of a stir in the stock market. After news settled that he had won the presidency, markets rebounded in a big way.
President-Elect Donald Trump (R) caused a bit of a stir in the stock market. After news settled that he had won the presidency, markets rebounded in a big way.

NEW YORK (AP) — The latest on financial markets following the election of Donald Trump as the next president of the United States (All times local):

11:25 a.m.

Russia’s main share index closed up 2.2 percent, leading emerging markets, amid speculation that Donald Trump’s election as U.S. president could spell an eventual end to sanctions imposed over the Ukraine crisis.

The Micex index’s leaders included several state-owned companies, with gas giant Gazprom up 4.5 percent and energy generator RusHydro up 3.5 percent.

Sanctions have restricted Russian companies’ access to capital markets and ability to work with U.S. entities.

Moscow-based Chris Weafer of Macro Advisory says market participants in Russia “feel like they’ve dodged a bullet” by avoiding Hillary Clinton’s tougher approach to the country, but that U.S. sanctions are unlikely to be lifted quickly under a Trump administration, despite Trump’s praise for the Russian leader during the campaign.

The Russian ruble fluctuated during the day, and was down 0.4 percent at 64 per dollar by Wednesday evening.

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9:35 a.m.

Stocks are opening slightly lower on Wall Street as markets have a tempered reaction to the victory of Donald Trump in the U.S. presidential election.

Markets had been jittery over the prospect of a Trump administration in recent weeks, but the declines in early trading on Wall Street Wednesday were modest.

Health care stocks bucked the downward trend and were broadly higher, led by drugmakers. Investors had feared Hillary Clinton would implement curbs on drug pricing increases that could hurt drugmakers and biotechnology companies.

Pfizer jumped 9 percent, the biggest gain in the Dow Jones industrial average.

The Dow was down 64 points, or 0.4 percent, to 18,268. The Standard & Poor’s 500 index lost 11 points, or 0.5 percent, to 2,128. The Nasdaq composite lost 38 points, or 0.8 percent, to 5,153.

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8:55 a.m.

U.S. bond yields have risen strongly in the wake of Trump’s victory, a sign that investors think the outlook for the U.S. economy remains positive.

The yield, or interest rate, on the U.S.’s ten-year bonds is up 0.08 percentage point at 1.948 percent. That has helped the dollar recover its poise following earlier losses when Trump’s victory became increasingly likely. The euro, for example, is now basically flat on the day at $1.1025.

Kathleen Brooks, a research director at City Index in London, thinks the rise in the yield may represent some optimism over the U.S. economic outlook given Republican control of both the White House and Congress. That clarity in government, she said, could aid growth.

However, she warns that there could be problems ahead if yields continue to rise over the coming days and weeks. If they do, she says “concern may grow that bonds are selling off due to fears of America’s creditworthiness under a President Trump.”

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8:30 a.m.

Investors are bracing for a rough day for some health care stocks after the Republican victories in Tuesday’s elections.

Mizuho Securities analyst Sheryl Skolnick says the Trump win and looming GOP control of Congress represent a worst-possible outcome for health care stocks. She says that a repeal of the Affordable Care Act, something Trump has promised, would take away the expansion in several states of the government’s Medicaid program for the poor, and that expansion helped both hospital and health insurance stocks.

Skolnick lowered her rating on several stocks, including the nation’s hospital chain HCA Inc. and the largest health insurer, UnitedHealth Group Inc., to “neutral” from “buy.”

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7:40 a.m.

For financial markets, Trump’s victory is the latest manifestation of a backlash against globalization.

Christopher Mahon, Director of Asset Allocation Research at Barings, says Trump’s victory is an example of people believing that inequalities in society are a result of globalization. That belief, he says, was behind the unrest in Greece during that country’s debt crisis over the past few years as well as Britain’s vote in June to leave the European Union.

Mahon says “globalization and the liberal economic consensus is in full retreat” if Trump doesn’t temper his views.

He says it “is clear that this next president will have a profound effect on global markets.”

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6:50 a.m.

With less than three hours before Wall Street opens for business following Trump’s victory, the mood in financial markets remains sanguine, especially when compared to the initial impact of his stunning win.

When it became apparent that Trump was surging to victory following a run of triumphs in key swing states, predictions about the open on Wall Street were extremely negative. The Dow was forecast to open some 800 points lower.

But following a fairly conciliatory victory speech by the president-elect, the Dow is now anticipated to open down 360 points, or 2 percent.

Connor Campbell, a trader at Spreadex, says “a surprisingly ‘presidential’ Trump victory speech …. seems to have reassured investors .”

Losses have been similarly trimmed in European markets. Germany’s DAX, for example, is only 1.5 percent lower at 10,330 while Britain’s FTSE 100 index is down 0.6 percent at 6,802.

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6:00 a.m.

Germany’s main business lobby group is calling for President-elect Donald Trump to refrain from isolating the U.S. and warning of a negative impact on the global economy if uncertainty persists.

The head of the Federation of German Industries, Ulrich Grillo, said Wednesday that the U.S. must continue to back open markets because “anything else would be poison for the U.S. economy.”

Grillo said in a statement: “The uncertainty in the economy is huge. Donald Trump would be well advised not to seal off the U.S. economy from the world. Otherwise, the lack of clarity about the future course will lead to significant negative effects for the world economy.”

The United States was the single biggest trading partner last year for Germany, which has Europe’s biggest economy.

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5:40 a.m.

One reason stock markets have rallied off earlier lows is an anticipated boost from U.S. fiscal policy when President-elect Donald Trump enters the White House in January.

Trump and Congressional Republicans, who won both the House of Representatives and the Senate, have indicated a desire to push through large tax cuts, enact corporate tax reforms and spend on infrastructure projects.

Standard Life Investments has advised its clients that the medium-term implications for markets depend on the actual policies of President Trump and what can be negotiated through Congress.

It said Wednesday: “The direction of the dollar will be influenced by a number of forces in the medium-term, including whether fiscal policy is loosened and a repatriation tax is implemented, as well as the shape of trade arrangements.”

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5:20 a.m.

The Russian ruble is stable while the country’s stocks are on the rise after U.S. President-Elect Donald Trump’s victory speech.

The ruble had been down in early trading but is now trading at around 63.8 rubles to the dollar and near to yesterday’s close.

Moscow-based Sberbank analyst Tom Levinson says the ruble has proved among the “most resilient” of world currencies in part due to expectations for “greater communication on the political level” between the U.S. and Russia, as well as Russia’s lack of dependence on non-energy exports.

It’s been a similar regarding Russian stocks. The Moscow exchange’s main MICEX index had been down 1.4 percent in early trading, but swiftly recovered its losses and was trading up 1.6 percent at 1.p.m local time.

One of the main drivers of growth for the MICEX is gold and silver producer Polymetal, which was up almost 5 percent. Demand is strong worldwide for precious metals, a traditional safe haven for investors.

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4:05 a.m.

European stock markets and Wall Street futures have trimmed a chunk of their early losses after a relatively soft victory speech from U.S. President-elect Donald Trump.

Germany’s DAX is down 2 percent at 10,267 while the FTSE 100 index of leading British shares is 1 percent lower at 6,773.

U.S. stocks are also expected to open lower too, though by far less than earlier predictions. Dow futures are 1.6 percent lower at 17,996 while the broader S&P 500 futures are down 2 percent at 2,094.

Kathleen Brooks, research director at Forex.com, says Trump “definitely sounded more presidential than he has done at any stage during the election campaign” during his victory speech, in which he praised Hillary Clinton.

Brooks says the speech has helped soothe stressed markets.

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3:35 a.m.

As stock markets around the world take a tumble following the election of Donald Trump as president of the United States, investments traditionally viewed as safe havens are getting a lift.

Gold is up 1.8 percent at $1,297 an ounce, while the Swiss franc has risen against the dollar, which is down 0.7 percent at 0.9725 Swiss francs. The Japanese yen has also been heavily in demand, with the dollar down 1.9 percent at 103.17 yen.

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3:15 a.m.

European markets have opened lower after Donald Trump was elected president of the United States.

The Stoxx Europe 600 index was down 2.2 percent, while Germany’s main DAX index opened 2.9 percent lower. The euro was 0.6 percent higher at $1.1092 as the dollar dropped across the board.

Carsten Brzeski, chief economist at ING Germany, said markets faced “chaos and turmoil” in coming days because of uncertainty about what economic program Trump would follow. Germany, for instance, depends heavily on global trade, while Trump has spoken out against trade treaties.

Brzeski said global market turmoil could be worse than that which followed the British vote to leave the European Union due to the bigger role the U.S. plays in the global economy.

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