Global markets are “being shaken up” with the race to the U.S. elections tighter than expected, warns the boss of one of the world’s largest independent financial advisory organizations. According to the New York Times, Donald Trump now has around a 94 percent chance of winning the Presidency. The Mexican Peso has fallen the most since 1984 at one point dropping double digits.
By Krassotkin (derivative), Gage Skidmore (Donald Trump), Gage Skidmore (Hillary Clinton) [CC BY-SA 3.0], via Wikimedia CommonsThe warning from Nigel Green, founder and CEO of deVere Group, comes as early results from the race to the White House show Clinton locked in a tighter-than-anticipated race with Trump in key battleground states.
Mr Green says: “With the results almost neck and neck, all major markets in the Asia Pacific region have fallen. This trend can be expected to be repeated as other indices across the world open. Currencies are equally volatile with the Mexican Peso lower and the Japanese yen on the rise.
“Global markets are being shaken up. You can hear early alarm bells ringing.
“This should be expected as markets tend to have knee-jerk reactions to these kind of situations, because Trump is represents uncertainty which markets hate, and also because the markets had all but priced-in a Clinton victory.
“Should there be a Trump win, the sell-offs in global markets will be compounded by the markets having priced in a Clinton victory and were wrong.”
He continues: “The markets are reacting this way not only because Trump is perceived to be wanting to stir up the status quo, but also because he has some controversial protectionist policies that could impede sustainable global economic growth.
“We need to wait for the dust to settle on this most divisive of elections, but there will be major financial opportunities for investors whoever wins the keys to the White House in a few hours’ time. ”