“It appears neither
candidate moved the needle very much during the debate. Both candidates kept to
their script on economic policy. Clinton continued to emphasize policies that
would increase spending on infrastructure and other programs offset by higher
taxes on businesses and wealthy individuals while Trump’s main message was
lower taxes and better trade deals.” Said LEWIS ALEXANDER, chief U.S.
economist, NOMURA.
PAUL HICKEY,
co-founder, BESPOKE INVESTMENT GROUP also said that, “The two candidates are
proposing two very different approaches. Clinton’s is a combination of left
wing appeasement (via tax hikes on the highest income earners) mixed with
relatively responsible fiscal policy and moderate foreign policy. We would note
'responsible' in that sentence isn’t meant as an endorsement; we believe the
economy would benefit from certain kinds of deficits, especially those used to
fund infrastructure. Trump proposes large tax cuts and a much wider deficit,
along with ‘hardball’ approaches to foreign policy with respect to trade, currency
policy, and mutual defense.”
JAMES
ATHEY, investment manager, ABERDEEN ASSET MANAGEMENT said, “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 that 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." He also added:
“The reality is that these (market) 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 (of financial assets). For now, we expect markets to remain choppy
and directionless as sentiment ebbs and flows in the current vacuum of
meaningful new economic and monetary policy information.”
It will be interesting to see how the markets react after the election, or anytime before then if a significant margin forms between the candidates. The economy might start preparing for the economic plan of the winning candidate.
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