The likelihood of Republican nominee Donald Trump emerging as the winner has increased after Democratic Party candidate Hillary Clinton lost the comfortable lead she held late last month. Jameel Ahmad, vice-president of market research at ForexTime Ltd, said investors have once again failed to price in any risk premium as was the case during the Brexit vote. He said that in the run-up to the US election, the Malaysian market, being a part of emerging markets, could see a prolonged round of risk aversion, whereby investors steer away from emerging market assets. The market will likely see a recovery under such a scenario from the decline we have seen before the election,” he said. The fundamentals and growth in emerging market should help sustain the market,” he said.

Source: The Edge Markets November 07, 2016 01:48 UTC