Initial reactions of shock in markets across Europe are giving way to recovery following Donald Trump’s successful bid to White House.
The shock of Trump’s victory is being compared with Brexit by some analysts. However, markets as well as currencies have shown measured reaction and have not reacted as wildly as they did following Brexit.
FTSE 100 index fell 1.4% in early trading before recovering to trade flat at 6,838 points.
Money flows to safe haven
Other major European stock markets edged lower, with money flowing into safe haven stocks, gold and currencies including the yen.
Results defy traders’ expectations
The election results defied traders’ assumptions who had expected Hillary Clinton to win US elections.
France’s Cac index and Germany’s Dax are each down about 1% after heavier falls at the start of trading.
Pharmaceutical firms, gold and mining companies were the biggest winners on FTSE 100 while losers included banks and retailers.
Many Asian markets saw losses narrow towards the end of Wednesday trading. Japan’s Nikkei 225 closed down by 5.4%, but the Hang Seng in Hong Kong and the Shanghai Composite lost 2.2% and 0.6% respectively.