Global Markets Shudder On Prospect Of Trump Presidency

LONDON,, (APP - UrduPoint / Pakistan Point News - 02nd Nov, 2016 ) - Stock markets spiralled downwards Wednesday around the globe as investors fretted over growing fears of a Donald Trump presidency.

Asian equities sank and the Mexican peso fell after an poll Tuesday showed Trump overtaking market favourite Hillary Clinton in the race for the White House. "This is what happens when politics trumps economics," City Index analyst Kathleen Brooks told AFP.

"We saw volatility rise yesterday, which was bad news for stocks. Trump's comeback is a lightning rod for volatility. "Along with rising bond yields we could have the perfect storm for equities.

If we do not see Clinton win this election, get your hard hats ready.

" European stocks followed suit with another raft of losses on Wednesday, as investors became more risk-averse before the November 8 vote.

London closed down 1.0 percent, with Paris losing 1.2 percent and Frankfurt dropping 1.5 percent. Wall Street also edged lower, with the Dow down 0.1 percent in midday trading, as investors there were awaiting the end of the latest monetary policy meeting at the US Federal Reserve.

The Fed is widely expected to keep interest rates low, but the US central bank may use the occasion to put the public on notice to expect a rate hike in December -- though that is far from guaranteed.