Election Economy

Investors Brace for Bumpy Markets

  • Why it matters

    Why it matters

    As the U.S. presidential election has unfolded with twists and turns, the stock market has taken plentiful hits. Turbulence could continue well after the election’s outcome.

  • Facts


    • The reemergence of Hillary Clinton’s email scandal has tightened the U.S. presidential race, worrying major investors.
    • The U.S.’s vital S&P 500 index has been on a losing streak for seven days in a row. The Mexican peso has also lost more than 3 percent on the U.S. dollar.
    • Stockholders are predicting Ms. Clinton to win, but with a Republican majority in the House of Representatives.
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Trading On The Floor Of The NYSE While U.S. Stocks Rise On Deal Activity As Election Looms
Traders on the floor of the New York Stock Exchange (NYSE) assess the outlook for the presidential election and interest rates in the world's largest economy. Source: Bloomberg

Doubts about Hillary Clinton’s ability to win a vast majority in the race for the White House have set investors on edge, since the FBI’s recent investigations into the Democratic presidential candidate’s latest email scandal. Stockholders are preparing for short-term fluctuations in the market after the election takes place on November 8.

Such uncertainty is reflected in the exchange rates. The U.S.’s vital S&P 500 index has been on a losing streak for seven days in a row, with  many fleeing to the safe haven of gold. The Mexican peso, which was recognized by Credit Suisse as the “ultimate indicator” of the U.S. market, has lost more than 3 percent on the U.S. dollar in the wake of a fresh probe into Hillary Clinton’s emails.

“We are expecting a tight race,” said Martin Lück, chief investment advisor for Germany at Blackrock, the world’s largest asset manager.

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