Morning Briefing: ‘Trump slump’ hits world markets

Morning Briefing: ‘Trump slump’ hits world markets

Morning Briefing: ‘Trump slump’ hits world markets ‘Trump slump’ hits world markets
World equities are trending lower Wednesday as markets weigh the growing possibility of President Trump.

With some polls now putting Trump ahead of Clinton as the race to the White House enters its final week, investors are fearful of an administration which could make trade and immigration tougher.

In Asia, Tokyo’s Nikkei was most affected as the yen strengthened against the US dollar, hitting exporters’ stocks and driving the index down 1.76 per cent. Hong Kong, Seoul and Sydney weren’t far behind while Shanghai fared better, but still closed lower.

European indexes are also heading lower. Along with the Trump factor, investors are focusing on mixed earnings and data showing a stronger manufacturing PMI for the Eurozone, but a dip for the German index.

Wall Street and Toronto are expected to open lower.

Oil is declining while gold is on the rise as investors seek safer havens.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 18,037.10 (-0.58 per cent) -1.48 per cent +2.11 per cent
TSX Composite 14,778.32 (-0.06 per cent) +0.36 per cent +8.48 per cent
 
Europe (at 4.30am ET)
UK FTSE 6,888.78 (-0.41 per cent) -0.15 per cent +8.28 per cent
German DAX 10,443.50 (-0.79 per cent) -0.64 per cent -4.62 per cent
 
Asia (at close)
China CSI 300 3,333.35 (-0.77 per cent) +2.46 per cent -4.10 per cent
Japan Nikkei 17,134.68 (-1.76 per cent) +4.16 per cent -8.29 per cent
 
Other Data (at 2.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
47.50
(-1.33 per cent)
45.96
(-1.52 per cent)
1298.30
(+0.80 per cent)
U$0.7473
 
Aus. Dollar
U$0.7644

 
Fed to decide on interest rates but few expect a rise
The Federal Reserve’s monetary policy committee will meet Wednesday to decide whether to increase interest rates.

There is little expectation that it will happen though with markets pricing in a rise in December, but then central banks have made quite a few surprise moves in recent years.

With the election looming and markets volatile, most analysts believe that it would be a bad time for the Fed to change its policy.

There is also a subtle indicator that there are no surprises planned; there is no press conference scheduled to follow the FOMC meeting.