Donald Trump wins US elections 2016: What it means for MENA
Republican presidential candidate, Donald Trump, is projected to become the US president, beating Hillary Clinton, as he won the majority of votes, making him the 45th president of the United States.
“If any predictions can be made, I’d expect NATO to weaken with Trump, which would embolden Russia. If his rhetoric is anything to go by, the GCC region would have to expect a more confrontational US [given Trump’s win],” Marc Chéhab, Head of Peace & Security Programme at Switzerland foreign policy think tank, Foraus, told AMEinfo.
Find out what MENA thinks of the new president here
Gulf markets sink
Earlier during election night, Clinton had taken the lead, but Trump got key swinging states of Ohio and Florida to his favour, causing massive fluctuations in global stock markets.
Stock markets in the Gulf look were set to fall sharply in line with global bourses on Wednesday as investors face the possibility of a shock win by Donald Trump in the US presidential election, Reuters reported. Meanwhile, US stock futures have dropped 4.3 per cent and the MSCI Asia Pacific Index outside Japan is down 3.2 per cent over, the past few hours. (More on this story here)
Following the announcement, stock markets in the Gulf plummeted in line with global shares in the morning trade, as investors reacted to the victory of real-estate-developer-turned politician, Reuters reported.
Saudi Arabia’s index pulled back 2.7 per cent in the first ten minutes of trade as a little over nine-tenth of the traded shares declined.
The Gulf market’s most sensitive to foreign fund flows, Dubai’s market sunk 2.7 per cent as almost all of the traded shares pulled back, while Abu Dhabi’s index was down 1.7 per cent as two-thirds of the traded shares dropped.
In Doha, nine-tenth of the top 20 most valuable shares pulled back, dragging the index down 2.2 per cent. The largest listed stock by market value lost 2.4 per cent.
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. (Find out the latest market updates here)
Meanwhile, gold jumped nearly five per cent on the day, reaching its strongest value in six weeks and its largest single-day rise since Brexit, as Donald Trump edged further to the win.
On June 24, Brexit day, gold rose as much as eight percent when Britain decided to leave the European Union. It closed up by 4.8 per cent that day.
Click here to read: Donald Trump: Building an empire
Betting exchanges and online markets were reacting to the tight race between Hillary Clinton and Donald Trump.
Earlier this morning, online trading platforms gave Clinton a high 75 per cent chance at victory. However, oil prices later tumbled as Trump pulled forward in the race.
Moreover, most polls predicted that Clinton would be the winner of the elections, including hypothetical votes of the Arab world. (Find our how Arabs would have voted, between Clinton and Trump, here)