Stocks edge up as world markets brace for the outcome of one of the most contentious U.S. presidential elections in history, with most investors cautiously expecting a win by Democrat Hillary Clinton. Sonia Legg reports.
A day to remember, perhaps, as world markets brace for the outcome of one of the most contentious U.S. presidential elections in history. Trade was largely driven by cautious expectations of a win for Democrat Hillary Clinton. After world stocks started the week with their best day in four months - there was a more subdued tone with investors reluctant to make too many bets. The dollar and bond yields slipped, while stocks and gold merely edged up. SOUNDBITE (English) CHIEF ECONOMIST AT WORLD FIRST, JEREMY COOK, SAYING: "We've seen some movements in options markets which suggest downside protection - risk protection is being bought but certainly not in the same kind of levels that we saw pre-Brexit. Risk reversals in dollar/yen, for example, and not moving at the same rate as we saw for sterling/dollar or sterling against the euro pre-Brexit." Asian markets will likely be the first to find out - with results due in the early hours of Wednesday in the U.S. For some in Europe, a Trump win has few positives. (SOUNDBITE) (German) CAPITAL MARKETS STRATEGIST AT ODDO SEYDLER BANK, OLIVER ROTH, SAYING: "Donald Trump has an election manifesto which is about protectionism. This would be against the free trade concept, which most economists follow. A Trump win would massively threaten the world economy, it's not good for companies which is not good for markets. And he says he'll spend a lot of money, money he doesn't have, which means new debts, which won't be appreciated." Financial markets see Clinton as more of a known quantity. Although they'll be some keen to make money from risk, the memory of the Brexit vote is still too fresh for many. Most bookmakers and pollsters were wrong-footed in June - another shock just four months later might be harder to recover from.