WhyItDropped

Nikkei 225 · November 10, 2016

The day after the US election

+6.72%

single-day change vs previous close

Part of a longer stretch

Two and a half years the world rose together

early in it · 2016-02-12 → 2018-10-02, +62.32% over the whole period

What happened that day?

  • On 10 November 2016 the Nikkei 225 rose 6.72% in a single day
  • The day before, when the US election result came in, the Nikkei had fallen hard — an unexpected outcome meant more uncertainty
  • Within a day the reading flipped. The market decided that promised tax cuts and infrastructure spending would lift growth
  • US rates rose, the dollar strengthened and the yen weakened, all of which favours Japanese exporters
  • A crash and a surge inside two days — with no change in the facts, only in how they were read
  • Days like this show markets moving on interpretation rather than on the news itself

Sources

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.