Global ETFs slide as investors see Trump tariff policies hurting trade

U.S.-listed funds tracking planetary stocks mostly pulled backmost successful Wednesday's league arsenic investors considered Donald Trump's triumph harmful to planetary equities.

Closely followed exchange-traded funds from iShares tracking South Korea, Hong Kong, Taiwan and Chile each slid successful Wednesday trading. That comes contempt large U.S. indexes soaring to grounds highs.

Those idiosyncratic pullbacks travel arsenic traders acceptable for the President-elect Trump's projected policies for taxing imports. He has floated a tariff of up to 20% connected each goods coming into the U.S., with an particularly precocious 60% levy connected those coming from China specifically.

This argumentation was unpopular among voters, according to NBC News polling. But it appeared inconsequential successful the race, contempt the system much broadly being a main issue for Americans heading to the polls.

"While the investing scenery remains favorable successful the U.S., planetary markets are precise exposed to tariff policy, " said Yung-Yu Ma, main concern serviceman astatine BMO Wealth Management. "That uncertainty could bounds near-term upside successful planetary stocks."

These moves bespeak the divergence betwixt U.S. and planetary markets arsenic investors astir the globe instrumentality successful America's predetermination results.

While the Dow Jones Industrial Average headed for its champion time successful astir 2 years, European markets largely struggled connected Wednesday arsenic it go wide that Trump would prevail. In the U.S. market, the iShares Core MSCI Europe ETF (IEUR) slid much than 2%.

Asia-Pacific markets were more mixed, with Japan's Nikkei 225 bucking the downtrend. Still, the U.S.-listed iShares MSCI China ETF (MCHI) shed much than 2% connected Wednesday.

However, the Global X MSCI Argentina ETF (ARGT) climbed much than 2% and touched a caller 52-week high, a uncommon agleam spot among international-focused funds. The South American state past twelvemonth elected libertarian Javier Milei, who was compared wide to Trump, arsenic president.

The ICE U.S. Dollar Index, which tracks to U.S. greenback against a handbasket of planetary currencies, reached its highest level since July. LPL Financial main method strategist Adam Turnquist noted that the dollar's rally comes arsenic ostentation expectations roseate pursuing Trump's victory.

Turnquist said continued spot successful the American currency tin wounded planetary stocks, peculiarly emerging markets. These markets person underperformed U.S. counterparts successful caller years. Indeed, the iShares MSCI Emerging Markets ETF (EEM) slid much than 1% connected Wednesday.

— CNBC's Sarah Min, Jesse Pound and Hakyung Kim contributed to this report.