Markets await end of tight race for US leadership
America heads to the polls with the eyes of the world to follow the results as soon as exit polls are available. The U.S. dollar and stock markets rallied after the FBI declared there were no criminal findings in the latest investigation into Clinton’s emails ending a weeklong decline in the polls.
The path to the White House will end in victory for one of the candidates in what has become a new normal of American politics. High stakes and high drama have been a staple of the current election cycle. After the shock of Brexit the anxiety won’t dissipate until all votes are counted. The release of results all throughout the day as East coast exit polls are reported will impact markets. Safe havens such as gold have depreciated in the last 24 hours as risk appetite has returned. The Mexican peso (MXN) has recovered as the currency has acted as a proxy for a Trump defeat and emerging market exposure.
The market has shown its preference for a Clinton presidency as she once again leads by a small margin. Market behaviour should not differ from the tone set today if she is elected. Donald Trump remains an unknown factor, which brings the shock Brexit outcome with a reminder of the power of the protest vote that is heavy in uncertainty. The winner of the election will face a divided country with the job of rebuilding trust a top priority at home and abroad.