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Global Markets In Panic As Donald Trump Leads The Polls

| by Sarah Zimmerman

The approaching Nov. 8 election is making the foreign stock market jumpy, especially now that Republican presidential nominee Donald Trump is reported to be ahead in the polls -- even if it is by a single percentage point.

Asian shares hit a seven-week low, according to The Independent, with FXTM Chief Market Strategist Hussein Sayed saying he believes the market is in an "early stage of panic" about the U.S. presidential election. 

It's not just foreign markets that are suffering. The S&P 500 is heading into its seventh day of losses and the oil market is reported to be at a one-month low, according to Reuters.

"There is some anticipation that the markets have built in a Hillary victory, and that a Trump victory is going to roil the markets," said Paul Nolte, portfolio manager at Kingsview Asset Management, to Reuters. "And that's why we're seeing the market sell off here, because some of the poll numbers have tightened up over the last week."

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Polls from ABC and The Washington Post put Trump at 46 percent and democratic presidential nominee Hillary Clinton at 45 percent, according to The Independent. Experts suggest that the poll changes stem from recent news of the FBI reopening the federal investigation into Clinton's private email server, after a new trove of possibly confidential messages was found.

The Clinton campaign rejects these polls, calling into question the methodology used to gather the data.

"It’s not what we see all," said a Clinton senior aide. "There seems to be something about that [ABC/Post] model that seems odd.

“The race has tightened the way that we thought it would tighten, but we do not see anything that would suggest [the poll] is right."

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Methodology aside, the new numbers seem to have the world in panic mode. Europe’s Stoxx 600 index, which includes the continent's 600 largest companies, has hit its lowest level since early July, according to The Independent. The VIX, a market volatility measure known as "the fear gauge" on Wall Street, has increased by 14 percent, the highest its been in almost five months.

"The market was very certain that Hillary Clinton was going to win the election, and to the extent that doubts creep into that, it is not good for the stock market," said Stephen Massocca, chief investment officer at Wedbush Equity Management, according to Reuters. 

Sources: The Independent, Reuters (2) / Photo credit: Katrina Tuliao/Wikimedia Commons

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