Investing.com - Here are the top five things you need to know in financial markets on Wednesday, November 9:
1. Donald Trump surges to stunning victory in U.S. Presidential Election
Republican candidate Donald Trump has been elected as the 45th president of the United States on Wednesday, shattering expectations for a victory by Democrat Hillary Clinton.
Trump received a call from Clinton to concede the presidency, after he clinched victories in the key battleground states of Florida, North Carolina and Ohio.
In his victory speech, Trump said now was the time to come together as one united people and that the government would serve the people.
"I pledge to every citizen of our land that I will be president for all Americans, and this is so important for me", he said.
He also vowed to "deal fairly" with other nations and said America would embark on a national project of renewal.
“We will double our growth and have the strongest economy in the world. At the same time, we will get along with all other nations willing to get along with us", Trump said.
2. Global stocks recover from earlier losses after Trump speaks
U.S. stock index futures were well off overnight lows on Wednesday morning, trimming heavy losses after Donald Trump issued upbeat remarks in his first speech after winning the presidency.
S&P 500 futures were down 1.8% by 5:05AM ET (10:05GMT), still a large move, but a significant recovery from a decline of as much as 5% earlier. The blue-chip Dow futures were off by 315 points. Earlier, they tumbled by 750 points.
Meanwhile, European shares fell at the open, but the declines were more modest than earlier futures levels had indicated. Germany's DAX was down less than 1% in early trade. Initial indicators had suggested falls of up to 4% at the open.
Earlier, Asian shares plunged, with Japan's Nikkei dropping 5% as Donald Trump won the U.S. presidential election, shocking traders after recent polls indicated that Hillary Clinton would be the victor.
3. Safe-haven assets pull back from highs
Safe-haven assets pulled back from their strongest levels of the session on Wednesday after U.S. President elect Donald Trump gave a victory speech in which he said he would seek common ground and not hostility, contrasting the heated words he has become famous for at campaign rallies.
Gold was up by 2% at around the $1,300-level, pulling back from an earlier advance of as much as 4.7%.
Meanwhile, the yield on the benchmark U.S. 10-year Treasury note was at 1.916%, recovering after having tumbled to 1.716% earlier.
In the currency market, the yen was up 1.7% against the U.S. dollar, after climbing by as much as 3% earlier.
4. Mexican peso crashes to all-time low
The Mexican peso collapsed to an all-time low against the U.S. dollar, after Republican Donald Trump defied predictions and beat Democratic rival Hillary Clinton to take the U.S. presidency on Wednesday.
The peso weakened by more than 13% at one point, touching 20.78. It pared losses to trade around 9% weaker at 20.08 per dollar after Clinton conceded to Trump in a phone call.
Mexico's central bank has called a joint press conference with the Finance Ministry for 7:00AM local time (8:00 AM ET, or 13:00GMT). There are some expectations in the market that the central bank could raise its benchmark interest rate by an impromptu 75 to 150 basis points.
The Mexican currency has been sensitive to developments in the election amid fears that a victory for Republican candidate Donald Trump could damage the country’s economy.
5. December Fed rate hike odds at 76% after tumbling below 50%
Market expectations for a December rate hike by the Federal Reserve remained intact on Wednesday, after tumbling overnight amid fears over what a Trump win would mean for the U.S. economy.
According to Investing.com's Fed Rate Monitor Tool, traders are currently pricing in around a 76% chance of a rate hike next month. Odds dropped to as low as 43% earlier as Donald Trump stunned the world by winning the U.S. presidential election.
The dollar was recently down just 0.4% against a basket of major currencies, after sinking nearly 2% earlier.