Stocks, dollar slip on U.S. election worries

Tue Nov 1, 2016 4:39pm EDT
 
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By Saqib Iqbal Ahmed

NEW YORK (Reuters) - Global equity prices and the dollar fell sharply on Tuesday as investors sought safe havens amid mounting uncertainty about next week's U.S. presidential election.

U.S. Treasury prices ended higher, erasing earlier weakness, as falling stocks increased demand for bonds, while oil prices fell to one-month lows.

MSCI's 47-country "All World" index .MIWD00000PUS was down 0.4 percent, dragged down by weakness on Wall Street.

The S&P 500 .SPX dipped to near a four-month low before closing off session lows, as investors appeared to fret about the outcome of the U.S. presidential election.

"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 in Chicago. "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."

Democrat Hillary Clinton held a five-percentage-point lead over Republican Donald Trump, according to a Reuters/Ipsos opinion poll released on Monday, down only slightly since the FBI said on Friday that it was reviewing more emails in its investigation of Clinton ahead of the Nov. 8 election.

But a poll by ABC News showed Trump leading by one point and the Los Angeles Times put the Republican candidate more than two points ahead.

"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 LLC in San Francisco.   Continued...

 
Electronic boards show the exchange rate between Japanese yen against the U.S. dollar as a police officer (L) controls the traffic in front of a brokerage in Tokyo, Japan April 6, 2016. REUTERS/Issei Kato