Investors see no let up in market bloodbath if Trump wins presidency

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SINGAPORE, Nov 9 (Reuters) - Investors should brace for a further slump in global stock markets, the U.S. dollar and most commodities if Republican candidate Donald Trump becomes the next U.S. president, as appeared increasingly likely on Wednesday.

Markets fear a Trump victory could trigger global economic and political mayhem, creating massive uncertainty for investors who had been counting on a win by Democrat Hillary Clinton, whose policies were seen as more staid but predictable.

"If current market moves hold or go further, there is likely to be quite a bit of de-leveraging and forced selling tomorrow," Mohamed El-Erian, chief economic adviser at Allianz, said as global markets skidded.

See more about the plunging global markets:

13 PHOTOS
Markets plunge amid presidential election results
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Markets plunge amid presidential election results
A broker reacts as President-elect Donald Trump shows up on a television screen at the stock market in Frankfurt, Germany, Wednesday, Nov. 9, 2016.
(AP Photo/Michael Probst)

A pedestrian and financial journalist look at their phones as they are reflected in a window in front of a board displaying stock prices at the Australian Securities Exchange (ASX) in Sydney, Australia, November 9, 2016.

(REUTERS/David Gray)

A man walks in front of an electronic board displaying market indices from around the world, outside a brokeragein Tokyo, Japan, November 9, 2016.

(REUTERS/Issei Kato)

A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai, India, November 9, 2016.

(REUTERS/Danish Siddiqui)

An investor looks at his smartphone showing results from the US presidential election, at a securities company in Beijing on November 9, 2016. Stock markets around the region plunged in morning trading on November 9 as incoming results from the US presidential election suggested Donald Trump was leading markets favorite Hillary Clinton in the White House race.  

(WANG ZHAO/AFP/Getty Images)

A board displaying the exchange rates of Mexican peso against the U.S. dollar is seen at a foreign exchange house in Ciudad Juarez, Mexico, November 8, 2016.

(REUTERS/Jose Luis Gonzalez/TPX IMAGES OF THE DAY)

An employee of a foreign exchange trading company works in front of a monitor displaying a graph of the Japanese yen's exchange rate against the U.S. dollar in Tokyo, Japan, November 9, 2016.

(REUTERS/Toru Hanai)

People walk past an electric quotation board flashing the Nikkei key index of the Tokyo Stock Exchange (TSE) in front of a securities company in Tokyo on November 9, 2016. Japanese shares went into free fall as Republican presidential candidate Donald Trump appeared to be closing in on the White House.

(TORU YAMANAKA/AFP/Getty Images)

A currency trader works at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Nov. 9, 2016. The rising prospect of a Trump presidency jolted markets around the world Wednesday, sending Dow futures and Asian stock prices sharply lower as investors panicked over uncertainties on trade, immigration and geopolitical tensions.

(AP Photo/Ahn Young-joon)

A man walks past a display of the Hang Seng Index at a bank in Hong Kong Wednesday, Nov. 9, 2016. Asian shares have shed early gains, tumbling Wednesday as Donald Trump gained the lead in the electoral vote count in the presidential election. Dow and S&P futures also plunged. Earlier, investors had appeared persuaded that Hillary Clinton, seen as a more stable choice, would prevail.

(AP Photo/Kin Cheung)

Currency traders work at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, Nov. 9, 2016. The rising prospect of a Trump presidency jolted markets around the world Wednesday, sending Dow futures and Asian stock prices sharply lower as investors panicked over uncertainties on trade, immigration and geopolitical tensions.

(AP Photo/Ahn Young-joon)

A trader reacts as a television news report shows U.S. President-elect Donald Trump speaking following the U.S. Presidential election result announcement, inside the Frankfurt Stock Exchange in Frankfurt, Germany, on Wednesday, Nov. 09, 2016. Global markets were thrown into disarray as Donald Trump won the U.S. presidential election, shocking traders after recent polls indicated that Hillary Clinton would be the victor.

(Photographer: Alex Kraus/Bloomberg via Getty Images)

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Trump has threatened to rip up major trade agreements and impose barriers in the United States on imports from countries such as Mexico and China, which could reduce trade flows and harm already sluggish global growth.

Jack Ablin, chief investment officer at BMO Private Bank in Chicago, forecast U.S. stocks could drop as much as 10 percent over the next 10 sessions if Trump is elected to the most powerful office in the world.

"Investors don't know what he (Trump) is going to do; the policies he's laid out have been vague and his demeanor is capricious.

"Foreign markets, particularly emerging markets, would take most of the brunt. These are markets that rely more on selling to us than us selling to them."

RELATED: Meanwhile, Trump and Clinton gear up for the evening's results in NYC

34 PHOTOS
Inside both Trump and Clinton's NYC election night events
See Gallery
Inside both Trump and Clinton's NYC election night events
NEW YORK, NY - NOVEMBER 8: Men walk backstage at the Republican presidential nominee Donald Trump's Election Night event at New York Hilton Midtown in New York City on Nov. 8, 2016. (Photo by Jessica Rinaldi/The Boston Globe via Getty Images)
NEW YORK, NY - NOVEMBER 08: A screen is positioned in front of buildings ahead of Democratic presidential nominee former Secretary of State Hillary Clinton's election night event outside the Jacob K. Javits Convention Center November 8, 2016 in New York City. Clinton is running against Republican nominee, Donald J. Trump to be the 45th President of the United States. (Photo by Aaron P. Bernstein/Getty Images)
Workers iron a US flag as they prepare the US map shaped stage for Democratic presidential candidate Hillary Clinton's election night event at the Jacob K. Javits Convention Center in New York on November 8, 2016. Eager voters crowded into polling stations to choose a new US president Tuesday after a wild and bitter contest between the billionaire populist Donald Trump and Hillary Clinton, the Democrat seeking to become the first woman to win the White House. / AFP / Jewel SAMAD (Photo credit should read JEWEL SAMAD/AFP/Getty Images)
NEW YORK CITY - NOVEMBER 8: Trump campaign paraphernalia is seen behind a velvet rope at Donald Trump's Election Night event at the New York Hilton Midtown in New York City on Nov. 8, 2016. (Photo by Jessica Rinaldi/The Boston Globe via Getty Images)
A supporter wearing a cape watches Democratic presidential nominee Hillary Clinton's election night rally in the Jacob Javits Center glass enclosed lobby in New York, Tuesday, Nov. 8, 2016. (AP Photo/David Goldman)
A Trump supporter waits for the Trump rally to begin at the Hilton Hotel during the U.S. presidential election in New York City, New York, U.S. November 8, 2016. REUTERS/Andrew Kelly
NEW YORK, NY - NOVEMBER 08: Preperations take place before Republican presidential nominee Donald Trump holds his election night event at the New York Hilton Midtown on November 8, 2016 in New York City. Americans today will choose between Republican presidential nominee Donald Trump and Democratic presidential nominee Hillary Clinton as they go to the polls to vote for the next president of the United States. (Photo by Chip Somodevilla/Getty Images)
Supporters cheer as they watch election returns during Democratic presidential nominee Hillary Clinton's election night rally in the Jacob Javits Center glass enclosed lobby in New York, Tuesday, Nov. 8, 2016. (AP Photo/David Goldman)
People begin to arrive outside the Jacob Javits Center for Democratic presidential candidate Hillary Clinton's rally in New York, Tuesday, Nov. 8, 2016. (AP Photo/Craig Ruttle)
People watch elections returns during election night at the Jacob K. Javits Convention Center in New York on November 8, 2016. US Democratic presidential nominee Hillary Clinton will hold her election night event at the convention center. / AFP / DON EMMERT (Photo credit should read DON EMMERT/AFP/Getty Images)
A 'Make America Great Again' sign is displayed ahead of an election night party for 2016 Republican Presidential Nominee Donald Trump at the Hilton Midtown hotel in New York, U.S., on Tuesday, Nov. 8, 2016. Fifty-one percent of voters nationally were bothered a lot by Trump's treatment of women, while Democrat Hillary Clinton's use of private e-mail while secretary of state was troubling to 44 percent, according to preliminary exit polling as voting neared a close in some states. Photographer: Andrew Harrer/Bloomberg via Getty Images
NEW YORK, NY - NOVEMBER 08: A supporter of Republican presidential nominee Donald Trump attends the election night event at the New York Hilton Midtown on November 8, 2016 in New York City. Americans today will choose between Republican presidential nominee Donald Trump and Democratic presidential nominee Hillary Clinton as they go to the polls to vote for the next president of the United States. (Photo by Spencer Platt/Getty Images)
Supporters celebrate during Democratic presidential nominee Hillary Clinton's election night rally in the Jacob Javits Center glass enclosed lobby in New York, Tuesday, Nov. 8, 2016. (AP Photo/Frank Franklin II)
NEW YORK CITY - NOVEMBER 8: A Donald Trump supporter takes a picture of the press pen at Republican presidential nominee Donald Trumps election night event at the New York Hilton Midtown in New York City on Nov. 8, 2016. (Photo by Jessica Rinaldi/The Boston Globe via Getty Images)
A supporter holds a sign at the election night rally for U.S. Democratic presidential nominee Hillary Clinton at the Jacob K. Javits Convention Center in Manhattan, New York, U.S., on November 8, 2016. REUTERS/Lucas Jackson
'Hispanics For Trump' signs sit on a table ahead an election night party for 2016 Republican Presidential Nominee Donald Trump at the Hilton Midtown hotel in New York, U.S., on Tuesday, Nov. 8, 2016. Fifty-one percent of voters nationally were bothered a lot by Trump's treatment of women, while Democrat Hillary Clinton's use of private e-mail while secretary of state was troubling to 44 percent, according to preliminary exit polling as voting neared a close in some states. Photographer: Andrew Harrer/Bloomberg via Getty Images
NEW YORK, NY - NOVEMBER 08: A supporter of Republican presidential nominee Donald Trump cheers during his election night event at the New York Hilton Midtown on November 8, 2016 in New York City. Americans today will choose between Republican presidential nominee Donald Trump and Democratic presidential nominee Hillary Clinton as they go to the polls to vote for the next president of the United States. (Photo by Spencer Platt/Getty Images)
NEW YORK, NY - NOVEMBER 08: Eva Pearson of Long Island, NY holds her hands to her face as she watches voting results at Democratic presidential nominee former Secretary of State Hillary Clinton's election night event at the Jacob K. Javits Convention Center November 8, 2016 in New York City. Clinton is running against Republican nominee, Donald J. Trump to be the 45th President of the United States. (Photo by Win McNamee/Getty Images)
NEW YORK, NY - NOVEMBER 08: Democratic presidential nominee former Secretary of State Hillary Clinton is projected on a screen on election night at the Jacob K. Javits Convention Center November 8, 2016 in New York City. Clinton is running against Republican nominee, Donald J. Trump to be the 45th President of the United States. (Photo by Drew Angerer/Getty Images)
Woman hold ups up boxing gloves while cheering during an election night party for 2016 Democratic Presidential Candidate Hillary Clinton at the Javits Center in New York, U.S., on Tuesday, Nov. 8, 2016. Fifty-one percent of voters nationally were bothered a lot by Republican Donald Trump's treatment of women, while Clinton's use of private e-mail while secretary of state was troubling to 44 percent, according to preliminary exit polling as voting neared a close in some states. Photographer: John Taggart/Bloomberg via Getty Images
Two women chat ahead of Republican Donald Trump's election night event at the New York Hilton Midtown in New York on November 8, 2016. Millions of Americans turned out Tuesday to decide whether to send Democrat Hillary Clinton to the White House as their first woman president or to put their trust in Republican maverick populist Donald Trump. / AFP / Timothy A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images)
Guests watch a screen proclaiming Democratic presidential candidate Hillary Clinton as winning the state of Illinois at the election night rally at the Jacob K. Javits Convention Center in New York, U.S., November 8, 2016. REUTERS/Rick Wilking
Supporters of Republican presidential nominee Donald Trump watch news reports as results come in during election night at the New York Hilton Midtown in New York on November 8, 2016. Democratic candidate Hillary Clinton and Donald Trump were running neck and neck Tuesday in early results as polling stations closed in the eastern United States, with the world waiting anxiously to see who will win the historic White House clash. A deeply divided electorate of about 200 million Americans were asked to make a momentous choice between electing the nation's first woman president, or handing the reins of power to a billionaire populist who has upended US politics with his improbable outsider campaign. / AFP / Timothy A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images)
A guest reacts as she watches results on a television screen during Democratic presidential nominee Hillary Clinton's election night rally in the Jacob Javits Center glass enclosed lobby in New York, Tuesday, Nov. 8, 2016. (AP Photo/Matt Rourke)
A man reacts to returns at Democratic U.S. presidential nominee Hillary Clinton's election night rally the Jacob K. Javits Convention Center in New York, U.S., November 8, 2016. REUTERS/Adrees Latif
Marvin DeLeon (L) of Washington County, NY, cries as he stands in the overflow crowd for Democratic U.S. presidential nominee Hillary Clinton's election night rally at the Jacob K. Javits Convention Center in New York, U.S. November 8, 2016. REUTERS/Mark Kauzlarich
NEW YORK, NY - NOVEMBER 08: Supporters of Republican presidential nominee Donald Trump watch early results during the election night event at the New York Hilton Midtown on November 8, 2016 in New York City. Americans today will choose between Republican presidential nominee Donald Trump and Democratic presidential nominee Hillary Clinton as they go to the polls to vote for the next president of the United States. (Photo by Chip Somodevilla/Getty Images)
Supporters of Republican presidential nominee Donald Trump watch news reports as results come in during election night at the New York Hilton Midtown in New York on November 8, 2016. Democratic candidate Hillary Clinton and Donald Trump were running neck and neck Tuesday in early results as polling stations closed in the eastern United States, with the world waiting anxiously to see who will win the historic White House clash. A deeply divided electorate of about 200 million Americans were asked to make a momentous choice between electing the nation's first woman president, or handing the reins of power to a billionaire populist who has upended US politics with his improbable outsider campaign. / AFP / Timothy A. CLARY (Photo credit should read TIMOTHY A. CLARY/AFP/Getty Images)
Supporters of Republican presidential nominee Donald Trump watch results unfold on a TV screen during election night at the New York Hilton Midtown in New York on November 8, 2016. / AFP / Mandel NGAN (Photo credit should read MANDEL NGAN/AFP/Getty Images)
Supporters of Republican presidential nominee Donald Trump react to unfolding results during election night at the New York Hilton Midtown in New York on November 8, 2016. / AFP / Mandel NGAN (Photo credit should read MANDEL NGAN/AFP/Getty Images)
Supporters of US Democratic presidential nominee Hillary Clinton watch elections results during election night at the Jacob K. Javits Convention Center in New York on November 8, 2016. / AFP / DON EMMERT (Photo credit should read DON EMMERT/AFP/Getty Images)
Supporters of democratic presidential nominee Hillary Clinton react to early poll results during election night at the Jacob K. Javits Convention Center in New York on November 8, 2016. / AFP / Robyn BECK (Photo credit should read ROBYN BECK/AFP/Getty Images)
A woman weeps as election results are reported during Democratic presidential nominee Hillary Clinton's election night rally in the Jacob Javits Center glass enclosed lobby in New York, Tuesday, Nov. 8, 2016. (AP Photo/Frank Franklin II)
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Market turmoil could also prevent the U.S. Federal Reserve from raising interest rates as expected in December.

As the chance of a Trump upset grew, global markets plunged, with some losses eclipsing the carnage seen after Britain's shock vote to leave the European Union in late June.

"Whatever the outcome, this is a horribly angry electorate," said Daniel Alpert, managing partner at Westwood Capital LLC in New York.

"The markets will tank and then, those around Trump who have reasonable minds will script him with some pablum for the markets and calm them.

"But that is not the issue. The issue is that he cannot fulfill the goals of those who are in his crazy inner circle and, at the same time, truly address the interests of those who have risen up against the Washington consensus."

Trump was leading Democrat Hillary Clinton in the Electoral College by a tally of 244-209 as of 0440 GMT, with some key swing states still too close to call. A tally of 270 is needed to win.

The dollar, the Mexican peso and crude oil all plunged as Trump gained ground, with U.S. stock futures tumbling nearly 5 percent, likely wiping trillions of dollars of value off global financial markets, while traditional safe havens such as sovereign bonds, the Japanese yen and gold all rallied.

Emerging markets such as Mexico and companies related to them such as large U.S. stocks with global exposure are likely to bear the brunt of panic selling, investors forecast.

The MSCI Emerging Markets index plummeted 3.1 percent, its biggest one-day drop since the June 24 Brexit shock.

The Mexican peso is seen the bellwether for Trump's chances of a victory as his policies are damaging to Mexico's export-heavy economy. It plunged more than 13 percent to a record low as early projections put the maverick candidate with no political experience ahead.

"We'd probably see a selloff in riskier assets, in particular emerging markets assets, particularly the Mexican peso," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington, D.C.

"We're seeing that play out right now and I suspect if you see a Trump win we'd be seeing a continuation of something like that."

(Reporting By Nichola Saminather; Editing by Kim Coghill)

13 PHOTOS
What 'I Voted!' stickers look like around the country
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What 'I Voted!' stickers look like around the country
"I voted" stickers are on display for voters in the U.S. presidential election at Grace Episcopal Church in The Plains, Virginia, U.S., November 8, 2016. REUTERS/Joshua Roberts
Ohio voting stickers for early voters sit on a table at the Fairfield County Board of Elections Office in Lancaster, Ohio, U.S., on Saturday, Oct. 29, 2016. Democrats are battling in almost a dozen close races to pick up enough seats to take over the chamber that Republicans now govern with a four-seat majority, while Republicans argue they should be kept in control there as a check on Clinton should the Democrat be elected president. Photographer: Ty Wright/Bloomberg via Getty Images
NEW YORK, NY - NOVEMBER 08: A voter is seen outside the polls after casting their ballot in the national election on November 8, 2016 in New York, United States. (Photo by Noam Galai/WireImage)
PROVO, UT - NOVEMBER 08: A couple shows off their 'I Voted' sticker as they leave Wasatch Elementary school after casting their ballot in the presidential election on November 8, 2016 in Provo, Utah. Americans across the nation make their choice for the next president of the United States today. (Photo by George Frey/Getty Images)
LAS VEGAS, NV - OCTOBER 26: A Las Vegas Strip-themed 'I Voted' sticker is displayed at an early voting site at the Meadows Mall on October 26, 2016 in Las Vegas, Nevada. Voters in Clark County are voting early at a record pace this year ahead of the November 8 general election. (Photo by Ethan Miller/Getty Images)
'I voted' stickers, given to those who vote, are seen November 8, 2016, at Colin Powwell Elementary School, in Centreville, Virginia. Polling stations opened Tuesday as the first ballots were cast in the long-awaited election pitting Hillary Clinton against Donald Trump. / AFP / PAUL J. RICHARDS (Photo credit should read PAUL J. RICHARDS/AFP/Getty Images)
Ranelle Taylor points to her 'I Voted' sticker after voting in the US presidential election at Santa Monica City Hall on November 8, 2016 in Santa Monica, California. America's future hung in the balance Tuesday as millions of eager voters cast ballots to elect Democrat Hillary Clinton as their first woman president, or hand power to the billionaire populist Donald Trump. / AFP / Frederic J. BROWN (Photo credit should read FREDERIC J. BROWN/AFP/Getty Images)
WASHINGTON, USA - November 8: 'I Voted' stickers wait to be handed to citizens at Loudon County High School after they cast their ballots in the 2016 Presidential Elections in Leesburg, Va., USA on November 8, 2016. (Photo by Samuel Corum/Anadolu Agency/Getty Images)
Seth Schaecher, a deputy election official, displays stickers that he gives to voters, Tuesday, Nov. 8, 2016, at a polling place in Exeter, N.H. (AP Photo/Elise Amendola)
Iris Pettigrew carries voting stickers for voters after they cast their ballots, Tuesday, Nov. 8, 2016, in Indianapolis. (AP Photo/Darron Cummings)
Precinct worker Carolyn Scott holds a voter sticker at the Bermuda precinct during the U.S presidential election in Dillon, South Carolina, November 8, 2016. REUTERS/Randall Hill
A poll worker hands out an "I voted" sticker to a voter during the U.S. presidential election at Potomac Middle School in Dumfries, Virginia, U.S., November 8, 2016. REUTERS/Joshua Roberts
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Markets

S&P 500 2,241.35 29.12 1.32%
DJIA 19,549.62 297.84 1.55%
NASDAQ 5,393.76 60.76 1.14%
DAX 10,986.69 211.37 1.96%
HANG SENG 22,800.92 125.77 0.55%
NIKKEI 225 18,496.69 136.15 0.74%
USD (per EUR) 1.08 0.00 0.38%
USD (per CHF) 1.01 0.00 -0.30%
JPY (per USD) 113.78 -0.27 -0.23%
GBP (per USD) 1.26 0.00 -0.36%

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