Factbox: Market Participants React to U.S. Presidential Debate
JAMES ATHEY, INVESTMENT MANAGER AT ABERDEEN ASSET MANAGEMENT:
“What we’re seeing in markets this morning is a small, collective sigh of relief because most commentators, and the few polls that have been released, suggest Clinton won the debate. Equities have undone much of yesterday’s weakness and key Trump indicators such as the Mexican peso and Canadian dollar have rallied. This supports the notion once again that Trump is seen as protectionist and anti-globalization.
“The reality is that these moves are all fairly insignificant. Polls on voting intentions still show that the race is essentially neck and neck. It will be these polls which truly have the power to drive a genuine re-pricing.”
MICHAEL METCALFE, HEAD OF GLOBAL MACRO STRATEGY AT STATE STREET GLOBAL MARKETS, LONDON:
“In a similar way that sterling became the market proxy for Brexit risk, so moves in the Mexican peso and expected volatility of the Mexican peso appear to have become the main market proxy for expressing the probability of a Trump presidency.
“While there are many weeks of the campaign to run, the market reaction to the first debate does not mean that volatility will dissipate, but it does suggest Trump’s recent momentum has been arrested.”