Asian equities tumbled Wednesday, extending a global sell-off, and the Mexican peso fell after a poll showed Donald Trump overtaking market favourite Hillary Clinton in the race for the White House.
With Clinton until last week comfortably ahead, traders were upbeat about her chances of winning on November 8 but news Friday that the FBI were again looking at her emails has raised the prospect of Trump becoming president.
Trump is viewed as a wildcard, in part because of his harsh criticism of Federal Reserve chief Janet Yellen and international trade pacts.
“Since the FBI reopened its case into Hillary Clinton’s emails last Friday, her substantial lead in the polls has been decimated and some now even show Trump in the lead,” Craig Erlam, a senior market analyst at OANDA, said in a note.
Trump Hillary Clinton
“It’s been clear for some time now that markets would much prefer the stability that a Clinton victory would bring for the US economy and the reaction over the last 24 hours or so since the polls started to change so dramatically just confirms this. Trump risk is well and truly being priced in again.”