As the US election draws near, analysts fear a drop in share prices due to an email security scandal involving Democratic presidential candidate Hillary Clinton, as well as the seeming unconvincing economic policy of Republican bet Donald Trump.
This, after the Federal Bureau of Investigation (FBI), unearthed new evidence regarding the email server of Clinton which many insiders believe may raise concerns regarding information security concerns. This has also caused a dent in the Clinton campaign trail as polls are showing that the presidential race is still too close to call.
Another fear raised was that in case Trump gets to be elected into the presidency, it may cause uneasiness among investors and the market due to charges of mismanagement and bankruptcy, among other allegations raised against him.
On Wednesday, NasDaq composite fell by .93%. Down Jones closed about .4% and the S&P 500 fell by .7%. Analysts speculate that the issues affecting the controversies and approach on economic policies have "taken their toll on investor sentiments."
But as much as the fears are mounting, traders are taking the opportunity to leverage the drop in share prices once they start to bounce back on their feet after reeling from the elections.
Global stocks, on the other hand, continue to suffer a beating with events leading to the coming elections. This has also raised concerns regarding the exchange of currencies as the US dollar started to slip .4% to 102.8 Japanese Yen. The Euro further went up by .1% equivalent to $1.10. It also dropped .4% against the Mexican peso.
In Asia, share prices also dropped and gave some positive trending for some slight earnings in European stocks, however, an overall view painted a bleak picture based on the MSCI world equity index that has been performing poorly in the past four months.
