US Election 2016: Trump victory unsettles markets

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

The FTSE 100 index fell 2% at the start of trading before paring back some losses to trade 0.7% 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 Mr Trump to become the next US president.

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