Dubai’s market drops 2.5 percent after Trump election.
The Dubai stock market dropped by 2.5 percent on Wednesday (November 9) as Donald Trump swept to victory in the U.S. presidential election.
The U.S. dollar, Mexican peso and world stocks also fell after news of Trump’s victory but fears of a Brexit-style shock that wiped trillions off global markets has failed to materialize so far.
In Dubai, investors appeared confident the hit is only temporary.
“This reaction was expected just like in other markets…It is my belief that the investor is confident that this news that affected some stocks will pass and …this will be a completely isolated issue from the results of our local companies,” said investment advisor at ABF Consultancy, Bahaa al Far.
But many investors fear a Trump victory could cause global economic and trade turmoil and years of policy unpredictability, discouraging the Federal Reserve from raising interest rates in December as long expected.
A wealthy real-estate developer and former reality TV host, Trump rode a wave of anger toward Washington insiders to win the White House race against Clinton, the Democratic candidate whose gold-plated establishment resume included stints as a first lady, U.S. senator and secretary of state.
Markets had favoured Clinton as a status quo candidate who would be considered a safe pair of hands at home on the world stage. Analysts had no such certainty about Trump whose powers could be bolstered by the Republican’s control of the Senate.
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