May 21, 2024 12:29 am
Financial Markets are More Anxious due to US Electoral Process

The upcoming United States presidential elections on November 5 are of utmost importance for the global economy. According to Ernesto Revilla, Chief Economist for Latin America at Citigroup, the outcome of these elections will have a significant impact on the world’s most important economy and main trading partner. The different visions of the country’s economic policies and levels of protectionism in global trade are at stake.

The financial markets are concerned about the potential implications of a Trump presidency for global trade and geopolitical conflicts. There is uncertainty about the continuity of economic policies under different candidates, leading to increased volatility in the market. The focus on the US elections is heightened, while Latin American elections are not causing as much concern among investors.

In Mexico, although the US elections are still months away, there is anticipation about the potential outcomes. Revilla mentions that the market seems to be discounting a potential victory for Claudia Sheinbaum, the presidential candidate of the Let’s Keep Making History coalition. This is based on current poll results and the trajectory of the campaign. The markets expect some economic continuity if Sheinbaum wins.

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