DHAKA: UK and European markets are taking stock after sharp initial falls following Donald Trump’s victory.

The FTSE 100 index fell two percent at the start of trading before paring back some losses to trade 0.7 percent lower at midday.

Other major European stock markets also fell, with money flowing into safe haven stocks, gold and currencies including the yen.

Traders had expected Hillary Clinton to beat Trump to become the next US president.

France’s Cac index and Germany’s Dax are each down about 1.5 percent after heavier falls at the start of trading.

Some analysts have likened the shock of a Trump victory to the Brexit result earlier this year.

However, neither markets nor currencies have swung as wildly as they did after June’s EU referendum.

US stock futures fell dramatically overnight as Trump’s lead became clear, although the Dow Jones index is now expected to lose two percent - about 400 points when it reopens - compared to earlier predictions of a 4 percent fall.

Asian markets were described as a “sea of red” at one point, before seeing their losses narrow towards the end of Wednesday trading.

Japan’s Nikkei 225 finished 5.4 percent lower, but the Hang Seng in Hong Kong and the Shanghai Composite - which closed later - lost 2.2 percent and 0.6 percent respectively.

BDST: 2030 HRS, NOV 09, 2016
AP/BD