The U.S. dollar, Mexican peso and world stocks began to steady in the European morning, after being hammered overnight as Donald Trump swept to victory in the U.S. Presidential election. David Pollard reports.
(SOUNDBITE) (English) U.S. PRESIDENT-ELECT, DONALD TRUMP, SAYING: "I have just received a call from Secretary Clinton ...." If much of the world is asking 'how' and why' - traders are asking: 'where next?' For now the answer appears to be: away from risk. (SOUNDBITE) (English) ING DIBA HEAD ECONOMIST, CARSTEN BRZEKI, SAYING: "It is a deja-vu, it is a 'Brexit 2,0', and it is going to take a couple of days, maybe weeks, before they have re-digested the outcome." Stocks were among the first hit. Though a tumble in Europe was followed by a rebound - a relatively modest reaction after a five per cent fall on Tokyo's Nikkei. Traders from Turkey to the Gulf also pondering an uncertain future. (SOUNDBITE) (English) BGC PARTNERS MARKET STRATEGIST, MIKE INGRAM, SAYING: "An important factor in this is not so much who's become president, it's that the Republicans retain entire control of Congress, so if Trump wants to push through a radical agenda - and he could argue that he has that mandate - then to what extent is the Republican establishment likely to be able to a brake on that. At the moment, we just don't know." Amongst the other big downward movers: US stock futures ahead of Wall Street's open Mexico's peso at a lifetime low against a dollar that was also diving. But there were big gainers. Swiss stocks - a traditional haven. Gold miners - gold itself expected to have its best day since the UK's EU referendum in June. Healthcare stocks: up over two cent as potential risks to pricing practices in the US fade on a Trump win. The yen - Tokyo signalling it could intervene to weaken it if necessary. Analysts now wondering what it all could also mean for the Fed. (SOUNDBITE) (English) BGC PARTNERS MARKET STRATEGIST, MIKE INGRAM, SAYING: "If you're seeing equity markets in particular under a lot of pressure, then the Fed could easily cite this as a reason to pull-back from rates. Obviously, they won't want to be drawn into the political debate, though it's fair to say we know that President Trump would not like Janet Yellen to be chairman of the Federal Reserve for instance." In the words of one trader, markets now face an epic challenge of the type they hate most: pricing in the unknown.