Global financial markets fall over trumps victory

The 2016 United States presidential election was a significant event that had far-reaching consequences for global financial markets. On November 8, 2016, Donald Trump was elected as the 45th President of the United States, defeating Democratic nominee Hillary Clinton.

In the aftermath of the election, global financial markets experienced a significant decline. The Dow Jones Industrial Average (DJIA) fell by over 800 points, or 3.5%, on November 9, 2016, the day after the election. The S&P 500 index also fell by over 3% on the same day.

The decline in stock prices was attributed to several factors, including:

1. Uncertainty about Trump's policies: Trump's campaign promises, such as his plans to repeal the Affordable Care Act and reduce corporate taxes, created uncertainty about the future direction of the economy.
2. Fear of protectionism: Trump's campaign rhetoric on trade, including his promise to impose tariffs on imports, raised concerns about the potential for protectionism and its impact on global trade.
3. Concerns about the Federal Reserve: Trump's victory led to concerns about the future of the Federal Reserve, including the possibility that he might appoint a new chairperson who would have a different monetary policy approach.
4. Market volatility: The election was seen as a surprise by many market participants, leading to increased volatility and uncertainty.

The decline in stock prices was not limited to the United States. Global stock markets also fell, with the FTSE 100 index in the UK falling by over 2% and the Nikkei 225 index in Japan falling by over 3%.

However, it's worth noting that the decline in stock prices was not uniform across all asset classes. For example, the price of gold, which is often seen as a safe-haven asset, rose by over 2% on November 9, 2016.

In the months that followed, global financial markets continued to experience volatility, with the DJIA and S&P 500 indices experiencing significant fluctuations. However, the markets eventually recovered, and the DJIA and S&P 500 indices reached new highs in 2017 and 2018.

Overall, the 2016 presidential election had a significant impact on global financial markets, highlighting the importance of political events in shaping market sentiment and volatility.