Markets braced for week of volatility over US election

INVESTORS are braced for another week of turmoil as the race for the White House goes down to the wire.

After a bitter and divisive campaign, Americans will tomorrow elect the next president of the United States, sparking a fresh bout of volatility on financial markets.

‘People are holding their breath on the outcome of the election,’ said Curt Long, chief economist at National Association of Federal Credit Unions in Washington.

The FTSE100 index fell 4.3pc last week, wiping £76bn off the value of blue chip companies in its worst week since the start of the year. There was also heavy selling in Asia, Europe and the US as investors fretted about the outcome of the election.

Many investors regard Democrat candidate Hillary Clinton as a less risky bet than her Republican rival Donald Trump. ‘No one really knows what Trump would do should he get into power, probably not even himself,’ said Joshua Mahony, a market analyst at City trading firm IG.

Analysts warned that a Trump victory could trigger another sell-off this week. ‘The trades you’re seeing in the market at the moment will go further in the event of a Trump victory,’ said Mike Bell, global market strategist at JP Morgan Asset Management in London.