Global Investors Concerned About Possible Donald Trump Victory

US Election 2016Hilary Clinton, the Democratic Presidential nominee seems to be a clear winner at the end of the October month. She is leading her way against her competitor Donald Trump as she has a strong lead in polls.

Interestingly, the poll gap between the two has been minimised last week after FBI had launched an investigation into the emails sent by a close aide of Hilary Clinton. With trump closing the gap, there is a lot of concern amongst the global investors. As a result of which, prices of oil, dollar, and global stocks dropped on November 2. On 9th November, the presidential voting will take place and ultimately the winner out of two will be announced. Global investors are of the opinion that Hillary will no longer be in the race to become the next President.


FTSE in Britain dropped by 0.4 percent while the DAX in Germany dropped by 0.7 percent. The 300 leading share index in Europe also dropped by 0.4 percent which hit a four-month low after reaching 1313 points.

According to the analysts at Barclays, if Trump continues to move ahead in polls against Clinton, there could be a drop in S&P 500 by 4 to 5 percent. If Trump wins the polling election and declared the next President of USA, then S&P 500 can drop up to 10-11 percent.

Koichi Yoshikawa, who is the Executive Director of financial markets at Standard Chartered Bank, has made the following statement:

If you had a long dollar position on the view that the dollar would gain because Clinton would win, you would surely close that position because her victory is less certain.

A poll from the Reuters shows that Hillary is still having the lead of 5 points over Donald Trump. However, in other polls, it is being clearly shown that Trump is ahead in the competition by 1-2 percent. Due to the Presidential race in the USA, the Asian stocks are also affected and hit a seven-week low figure on November 2.

However, there is a drop of just 0.1 percent in the US Stock futures and it has managed to recover from its past losses. This figure is still four-month low for the Wall Street. It is interesting to note that safe haven assets like gold and Swiss franc continue to do well and are not the least but affected by the political climate. The gold prices registered a four-week high figure, going up to $1,297 per ounce. On the other end, Swiss franc also registered a four-week high figure, going up to 1.0750 francs per euro.

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