Shares rise as Clinton looks more likely to win US election
- 7 years ago
The news that Hillary Clinton will not face criminal charges over her email server scandal is a major factor behind a big rise in share prices and the value of the dollar on Monday.
Last week the index of Europe’s top 600 shares recorded its largest weekly loss since February due to the tightening US election race.
Analysts at Deutsche Bank said a Clinton victory could lift that index by around five percent, while policy uncertainty following a win by Donald Trump could see it fall by five to 10 percent.
DEUTSCHE BANK: Here's what a Clinton or Trump victory means for European markets https://t.co/deOJpRnEQT pic.twitter.com/0MQJtihjFj— Business Insider UK (@BIUK) November 7, 2016
Clinton is seen as the more status-quo candidate by investors, while Trump’s stance on foreign policy, trade and immigration has unnerved the market.
Bank shares benefitted most on Monday, led by HSBC. The emerging markets-focused bank posted a sharp jump in its core capital, bolstering the outlook for near-term dividend payments.
There was also a reversal for many of the so-called safe-haven investments that performed so strongly last week when polls showed Trump closing the gap.
Gold, government bonds and the Swiss franc were all down on Monday.
A big winner was the Mexican peso which jumped around two percent. The currency has acted as a bellwether of sentiment as Trump’s proposed policies are considered deeply negative for the country.
The Mexican peso is surging https://t.co/Fw3rckySKC— Gunow UK (@Gunow_uk) November 7, 2016
Last week the index of Europe’s top 600 shares recorded its largest weekly loss since February due to the tightening US election race.
Analysts at Deutsche Bank said a Clinton victory could lift that index by around five percent, while policy uncertainty following a win by Donald Trump could see it fall by five to 10 percent.
DEUTSCHE BANK: Here's what a Clinton or Trump victory means for European markets https://t.co/deOJpRnEQT pic.twitter.com/0MQJtihjFj— Business Insider UK (@BIUK) November 7, 2016
Clinton is seen as the more status-quo candidate by investors, while Trump’s stance on foreign policy, trade and immigration has unnerved the market.
Bank shares benefitted most on Monday, led by HSBC. The emerging markets-focused bank posted a sharp jump in its core capital, bolstering the outlook for near-term dividend payments.
There was also a reversal for many of the so-called safe-haven investments that performed so strongly last week when polls showed Trump closing the gap.
Gold, government bonds and the Swiss franc were all down on Monday.
A big winner was the Mexican peso which jumped around two percent. The currency has acted as a bellwether of sentiment as Trump’s proposed policies are considered deeply negative for the country.
The Mexican peso is surging https://t.co/Fw3rckySKC— Gunow UK (@Gunow_uk) November 7, 2016