Asian shares stumbled and the US dollar on was on the defensive on Wednesday morning as signs that Donald Trump could be closing the gap with his rival Hillary Clinton spooked investors.
Anxiety in markets has deepened over a possible Trump victory given uncertainty on the Republican candidate’s stance on several issues including foreign policy, trade relations and immigrants, while Clinton is viewed as a candidate of the status quo.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.4 percent while Japan’s Nikkei fell 1.1 percent.
A Washington Post poll on Tuesday had the gap between the two candidates at just one per cent.
That pushed US S&P 500 Index down to a four-month closing low on Tuesday. The CBOE volatility index, often seen as investors’ fear gauge, briefly rose to a two-month high above 20 percent.
In the currency market, traders sold the dollar partly as they suspect Trump would prefer a weaker dollar given his protectionist stance on international trade.
On the campaign trail last night, Mrs Clinton launched a fierce attack on a heckler at a rally in Florida who shouted that her husband Bill Clinton was “a rapist”.
The Democratic nominee slammed the “dark, divisive, dangerous vision” of Mr Trump after she was interrupted by the heckler during the rally, which did not start until way after 10pm local time.
A man shouted shouted “Bill Clinton is a rapist!” at her and waved a sign with the same sentiments.
Mrs Clinton, who has had a tough few days after the announcement that new emails connected to her were being investigated by the FBI, turned on him.
“I am sick and tired of the negative, dark, divisive, dangerous vision and the anger of people who support Donald Trump,” she shouted.
Her voice cracking, but determined, she stated: “Well, I’ll tell you what! Donald Trump has proven himself to be temperamentally unfit and unqualified to be president of the United States.”
She was bolstered by a poll in Florida – a state that Mr Trump must win to have any chance of claiming the White House – that forecast last night that she holds a 48-40 lead there.
The FBI came under further pressure last night after reports the agency had decided not to publicise an investigation into Mr Trump’s former campaign manager.
Adding to claims the agency is “meddling” in the US presidential election, the New York Times stated the FBI chose to keep quiet both on the investigation into Paul Manafort, and his secretive business dealings in Ukraine, and the investigation into the Clinton Foundation.
James Comey, the FBI director, announced on Friday that fresh emails, discovered on the laptop of Anthony Weiner, the disgraced former New York congressman and estranged husband of Huma Abedin, the top Clinton aide, were being investigated.
That decision “has plunged the FBI and the Justice Department directly into the election, precisely what Justice officials were trying to avoid,” the New York Times said.
FBI agents are currently racing to review the new batch of emails in search of potentially incriminating evidence in their high-pressure probe before the election on November 8.
However, it is increasingly unlikely the probe will be complete by election day, officials repeated on Tuesday, adding that they may offer updates before then.
Mr Trump received a $10 million advertising boost on Tuesday from a super PAC attacking Mrs Clinton as too scandal-plagued for the White House.
With this late ad buy, Future 45 and a companion nonprofit group became the top big-money helpers to the Republican nominee.
An advert set to debut nationwide this morning calls the FBI’s disclosure that it is again looking at Mrs Clinton’s email practices “a new bombshell”.
And he can also count on the support of one member of the Bush family. George P Bush said he was the only member of his powerful political family who will be voting straight-ticket Republican and says his grandfather and uncle, both former presidents, could “potentially” cast ballots for Mrs Clinton.
Mr Bush is Texas’ land commissioner. His father, Jeb, is the former Florida governor who was defeated by Mr Trump in the Republican presidential primary.
Telegraph UK
