Global stock markets have been noted as calm as Americans headed to the polls for the presidential election on Tuesday. This year’s US election is one of the most anticipated given the tight race between presidential hopefuls Kamala Harris for the Democrats and the Republican Donald Trump.Makwe Masilela of Makwe Fund Managers says market players are avoiding making any major bets on trading positions until the uncertainty of the US polls weans off.
With polls showing a dead heat between the former president and the current vice president and control of the US Congress also at stake, investors are wary of any unclear or contested result that could fuel volatility stemming from any lasting uncertainty about the political backdrop. The four largest US banks encouraged their workers to participate. JPMorgan Chase, Bank of America, Citigroup and Wells Fargo gave employees several hours of paid time off to vote, while some lenders underscored the need to work across political lines.
Those so-called Trump trades include tumbles in the Mexican peso, which could be hit by tariffs, wild swings in the shares of Trump Media and Technology Group and rallies in industries that could benefit from looser regulation, such as regional banks and bitcoin. “People who back the former president tend to be quite enthusiastic,” said Steve Sosnick, market strategist at Interactive Brokers. “This is their last opportunity to express that enthusiasm in the market.”