Reuters/Mike Segar
Trump supporters embrace as they watch election returns come in at Republican U.S. presidential nominee Donald Trump's election night rally in Manhattan, New York, U.S.
Donald Trump wins. Trump overcame substantial odds to pull off what may be the greatest political upset in history. Trump leads the electoral college by a margin of 289 to 218 (270 needed to win) with three states still undeclared. At the moment, Democratic nominee Hillary Clinton holds a razor thin lead in the popular vote.
HSBC says a US recession is coming. Kevin Logan, the bank's chief US economist says that Trump's tax cuts might help in the short run, "the combined supply shock from a contraction in the labor force and from a disruption to international trade would likely put the economy into a recession after a year or two."
US stock futures are making a comeback. Dow futures tumbled more than 800 points in overnight trade, but have rallied well off their worst levels, currently trading down 360 points at 17,924. Meanwhile, the S&P 500 hit circuit breakers after a 5% drop, and are now off 2.3% at 2,087.
Stock markets around the world are mixed. Japan's Nikkei and Hong Kong's Hang Seng were hit hard overnight, booking respective losses of 5.4% and 2.2%. In Europe, markets have stabilized after witnessing big drops at the open. Britain's FTSE tumbled more than 2%, but now sports a loss of just 0.3% and Spain's IBEX has climbed into positive territory with a gain of 0.2%
Treasurys have staged a massive reversal. Aggressive buying pushed yields down as much as 17 bps in the belly of the curve, but things have turned around, especially at the long end where the 30-year yield is higher by 13 basis points at 2.75%.
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The dollar is taking a hit. The greenback is lower against most of its major peers with losses ranging from 0.6% against the British pound to about 2% against the Japanese yen.
The Mexican peso is getting slammed. The peso hit a record low 20.7818, down more than 13%, when Trump took control in key battleground states. However, it has since rallied off its worst levels and now holds a loss of 9% at 19.9660 per dollar. Notably, the dollar is up 1% versus the Canadian dollar. Trump has repeatedly said he would renegotiate NAFTA.
Gold is climbing. The precious metal hit an overnight high of $1,338 per ounce, but has halved its gains and currently sports a gain of 2.4% at $1306 per ounce.
US economic data is light. Wholesale inventories will be released at 10 a.m. ET and the Department of Energy's oil inventories will cross the wires at 10:30 a.m. ET.
Earnings reporting remains strong. Viacom, Tribune Media, and Wendy's are among the companies reporting ahead of the opening bell while Mylan and Shake Shack highlight the names releasing their quarterly results after markets close.