International Finance

US stocks fall on hint of Trump win

ABC/Washington Post poll on presidential race gave one point lead to the Republican candidate

IFM Correspondent

November 3, 2016: US stocks fell to the lowest since July amidst the uncertainty surrounding the presidential election after one poll suggested Donald Trump could win.

The latest ABC/Washington Post poll shows US presidential candidates Hillary Clinton and Donald Trump are neck-and-neck, with Donald Trump leading by just one point. The share price declines sent leading equity indices to their lowest level since Britain’s exit from the European Union.

Stocks pared losses after falling steeply in early afternoon trading as the S&P 500 breached a key technical level. The Dow Jones Industrial Average slipped 105.32 points, or 0.6 percent, to 18,037.10. The Nasdaq Composite Index dropped 0.7 percent, and the CBOE Volatility Index surged 8.8 percent to the highest since June 28.

The presidential race between Democratic candidate Hillary Clinton and Republican candidate Donald Trump has appeared to tighten in the past week following news that the FBI is investigating more emails as part of a probe into Clinton’s use of a private email system.

Investors anticipate turmoil in the market in the final stretch leading up to one of the most controversial elections in US history. There appears to be a general consensus among analysts that a Clinton win is likely to be good for the dollar as opposed to a Trump win. But anxiety and uncertainty is on the rise because, according to the latest polls, Hillary Clinton no longer appears to be in the lead. The market had accounted for Clinton winning but appears unprepared for Trump.

There are no major movements but as many investors are anxious about the outcome of the elections, there has been minor selling.

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