World markets bounce back after Donald Trump win
There has been a remarkable turnaround on world financial markets this morning.
Stocks are trading higher on Wall Street, after what had been a vicious selloff yesterday across Asia, Australia and New Zealand as it became clear Donald Trump would defeat Hillary Clinton in the US Presidential election.
The Dow Jones Industrial Average gained 265.95 points, or 1.40% to finish at 18589.69. That compares to yesterday afternoon when the Dow futures plunged by more than 700 points, a fall of around 4 percent.
Both the S&P500 and the tech heavy NASDAQ rose 1.11 percent.
Healthcare and defence stocks led the gains. Both sectors had been sold off in recent weeks. Investors had expected that a Clinton Presidency would mean increased regulation for drug companies.
The change in sentiment started when Donald Trump spoke to his supporters - and the world - last night. European markets - and US stock futures - rose higher as Donald Trump adopted a conciliatory tone, promised to work for all Americans and said that the United States would rebuild its aging infrastructure.
Investors put aside their initial panic, helped by comments from some analysts that a Trump Presidency will mean tax cuts and pro-growth policies.
The speech was vitally important after what had been scenes of panic on world markets.
The S&P/NZX 50 Index dropped by 3.3 per cent - its biggest percentage loss in more than five years. However within minutes of opening, the New Zealand market rose 3.2 percent on Thursday morning.
The Australian market closed almost two percent lower.
Stocks fell by big margins across Asia, with Tokyo falling 5.3 percent.
European markets initially fell as well before rebounding in the wake of Donald Trump's speech.
London's FTSE 100 added one percent, Germany's DAX rising 1.56 percent and France's CAC rising 1.49 percent.
The New Zealand dollar was trading at 73.00 US cents at 6am, compared to 73.70 as the polls started closing. That was a fall of around one percent.
Gold had yesterday enjoyed its biggest rally since Brexit as the results came in, rising 5 percent. But by 6am New Zealand those gains had been trimmed to around one percent.