It is safe to say that markets don't like uncertainty but this is on another level. Fears that Donald Trump was going to win the election saw risk-sensitive assets drop faster than Hillary Clinton's hopes of becoming the next US President overnight.
After dropping a big 5%, trading was halted in the S&P 500 futures while the Dow futures plunged by a whopping 800 points. Meanwhile the dollar slumped as the odds for a December rate hike fell to 50%. All this helped to boost the appeal of safe-haven assets, causing dollar-denominated gold and silver to surge higher.
But are the markets overreacting to all this? Perhaps. But for now, speculators are in a panic mode. They are selling stocks, index futures and the dollar at every opportunity and will be asking questions later. Who knows, Donald Trump, should he win, may not build that wall after all, turn out to be more open-minded about immigration and trade than people fear.
A winner is yet to be declared though, so we can’t rule out a Clinton victory at this stage. However her chances are looking bleak. I can't believe I am using the word "unlikely," but an unlikely win for Clinton could reverse all the losses US index futures suffered during the Asian session.