After a tumultuous presidential race, the final day of voting for the next president of the United States has added to market anxiety. Even though the results could turn into a non-event, already, market participants and government officials are preparing for the potential fallout. Remarks during the Asian session from Japanese Finance Minister Taro Aso indicated that Japan was prepared to intervene in exchange rates if there was a big spike in the Yen due to volatility in the US Dollar. Equity markets have stabilized, showing small corrections lower as Monday’s election optimism gradually fades. Volatility also dipped, with the S&P 500 VIX volatility index falling -16.88% to 18.71. The retreat in equities has seen precious metals back on the rise, with silver managing to fill in the gap resulting from the weekly reopening on Sunday night.
Financial Markets Brace for Volatility
Daily Analysis - 08/11/2016