US election 2016

Euro corporate bonds budged little on Wednesday morning as market participants reacted to Donald Trump’s surprise US election victory, with some investors buying on the dip and expectations growing for further central bank intervention in the market.

The FIG market looked set to shrug off Donald Trump’s surprise victory in the US presidential election on Wednesday, and bankers were optimistic that new issuance could restart in a matter of days.

Capital markets participants in Asia were digesting the news of Donald Trump’s victory in the US presidential election as markets in the region went into freefall. While bankers and investors admit that no market will be immune to the news, they are expecting a quick rebound in ECM, while debt issuers will take longer to come to terms with the result.

In a rollercoaster day for markets, the renminbi had a rocky start before gaining ground against the dollar as news on the US elections unfolded. But volatility is likely to continue in the coming days as markets get to grips with Donald Trump’s victory.

Market participants are confident that the strong technical support of the European Central Bank will protect euro corporate bonds from US election induced volatility, but central bank intervention does not seem as powerful a tool as it once was.

Do not be reassured by the checks and balances narrative. The US presidential election matters desperately. Either the US will be in a position to keep leading the world, or it won’t.

Though none of them are ruling out a victory for Donald Trump, FIG market participants are positioned for Hillary Clinton to win the 2016 US presidential election. Banks could be ready to launch new trades on the same day as the result is announced.

While the US presidential elections understandably held the attention of market participants on Tuesday as polling booths opened, some bankers believe that central bank policy will overshadow the result for SSA borrowers whatever it may be.

Derivatives markets across asset classes are projecting increased confidence of a Hillary Clinton win in Tuesday's US presidential election, but also revealing concern that volatility could then evaporate from markets for the rest of the year.

The chance to avoid an assault course of monetary policy announcements will give emerging markets borrowers reason to flood into primary markets once the result of Tuesday's US presidential election is announced, syndicate officials have said, especially if Hillary Clinton prevails. But those same bankers doubted the robustness of demand to take down a large volume of issuance so close to year-end.

Only hours before one of the most tightly contested US presidential election in recent times is decided, participants in the European high yield market gave the event as non-plussed a shrug as it could manage.

Trading volumes reported in the wake of the US presidential election suggest that November is off to a flying start for derivatives exchanges. But the Trump effect only begins to mitigate a pronounced slump in activity for some asset classes in October.