London pre-open: Stocks set to tumble as Donald Trump nears victory

Stocks in London were set to tumble at the open, with Republican Donald Trump on course to win the US presidential election.

The FTSE 100 was called to open 248 points lower than Tuesday’s close at 6,595.

CMC Markets’ Jasper Lawler said: “European stocks are projected to open between 4 and 5% lower, wiping off billions in market cap in one fell swoop of Trumpism. Since the US is the world’s largest economy and the US dollar is the world’s reserve currency, it still holds true that when the US sneezes, the rest of the world catches a cold.”

“Before Trump even had it in the bag, US stock markets futures were halted limit down until the New York Stock Exchange and Nasdaq open this afternoon. The price of gold has soared nearly 5% with the US dollar dropping 2% against a basket of currencies. The Mexican peso, which has proven the most sensitive to a Trump victory crashed double digits after an ill-conceived relief rally earlier in the week.”

Lawler pointed out, however, that one saving grace for the UK will be a relief in the selling the pound while the US dollar is under scrutiny.

In corporate news, global information services company Experian issued its half-yearly financial report for the six months to 30 September on Wednesday, with 5% organic revenue growth to $2.24bn, which was in line with its board’s target range

The FTSE 100 firm posted strong organic growth in credit services and decision analytics, and “improving trends” in marketing services.

Sainsbury's cut its interim dividend 10% as underlying profits fell the same amount despite revenues increasing as the decline in like-for-like sales eased off in recent months.

After completing the acquisition of Argos three weeks before the end of the period, the post-tax pension deficit swelled to £1.31bn.

Burberry’s half year revenues and profit decreased as the luxury fashion house implemented a turnaround plan to cut costs and revamp its products.

For the six months ended 30 September, revenue fell 4% to £1.15bn, compared to last year, but was up 5% on a constant currency basis.