How FTSE 100, gold and FX markets reacted to Trump shock

The UK stockmarket has won back most of the initial losses it endured in the first half an hour of trading, as investors digest the news that Donald Trump is to become the 45th president of the United States.

In overnight trading, futures markets dived into the red when signs started to emerge that the Republican campaign had gained both the momentum and the upper hand.

Safe haven assets, including gold and the Japanese yen, spiked against a weakening US dollar, with currency traders taking fright over the uncertainty Trump's presidency will bring. The dollar had slipped 1.67% against the yen as of 9.30am.

The yellow metal staged its biggest upward movement since Brexit, rising from to $1,269/oz to $1,332 in early trading - a rise of 4.7%. By 9.30am the yellow metal was hovering just above $1,300.

World markets shaken

The FTSE 100 dived into the red on the opening bell, declining 2.1% in the first couple of minutes of trading.

But shortly after Trump's victory speech, which brought a element of calm to the markets, the blue-chip index staged a comeback, winning back most of its losses.

Japan's Nikkei 225 ended trading down 5%, while China's Hang Seng index dipped 2.3%As of 9.30am the index was down just 0.13%, to trade at 6,833. The more domestically focused FTSE 250 was up 0.26%, while the FTSE All-Share was down 0.08%.

European stockmarkets, however, showed a sea of red, with the French Cac and the German Dax declining 1.2% and 1% respectively.

The sharp falls across Europe mirror falls overnight in Asia: Japan's Nikkei 225 ended trading down 5%, while China's Hang Seng index had dipped 2.3% by the close.

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