market jitters

Investors Brace for U.S. Election Result

Frankfurt investors are neither bullish nor bearish ahead of the U.S. elections. Source: Picture Alliance
  • Why it matters

    Why it matters

    The U.S. presidential election could send markets into a tailspin or trigger an upswing depending on the outcome.

  • Facts


    • In a Handelsblatt survey of DAX investors, 30 percent of respondents expect markets to rise over the next three months, while 24 percent anticipate a downturn and 32 percent are neutral.
    • The U.S. broadcaster CNN’s Fear and Greed Index has fallen to 30 percent, which signals a moderate amount of anxiety in the markets in the run-up to the election.
    • Stephen Heibel, director of Animusx, said a sustained selloff is unlikely because investors have already prepared for both a Donald Trump victory and a Democratic sweep.
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It’s been a wait-and-see kind of month: The blue-chip DAX index in Germany has briefly climbed above the psychologically-important 10,800 point mark several times since September, only to hit a ceiling and trade sideways.

All around the world, investors are waiting for November 8. In Germany, the U.S. presidential election could be the spark that triggers either a sustained breakout above 10,800 points or a major sell-off, depending on who wins and under what conditions.

Investors naturally hope for the former. Last week, the DAX reached a new high for the year of 10,827 points, defying predictions of an October crash and raising expectations for a year-end rally. Yet the markets remain cautious despite the recent upturn, according to a Handelsblatt survey of 2,300 investors.

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