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Banks uncertain whether it’s President Clinton or President Trump Video

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Banks uncertain whether it’s President Clinton or President Trump

Today is Tuesday 8th November 2016 and Banks are reporting that they are making preparations in the event of a Trump victory.

Global banks, including Morgan Stanley, JPMorgan Chase & Co and HSBC are bracing for potential tumult on financial markets after today’s U.S. election.

The timing of the results means that Asian regional markets will the first to trade. HSBC and Japan's Nomura Holdings are among institutions boosting staff levels, while others are raising the margin requirements for trading to cope with a possible spike in volume or volatility.

In the United States, Morgan Stanley told staff to consider using stop-loss orders, an automated trading mechanism that sells an investor's position as soon as a stock hits a preset level, if the result causes trading volumes and volatility to spike.

Some banks are projecting a more extreme drop in the event of a victory for Republican Donald Trump, with Citigroup Inc estimating that a Trump victory could trigger a 3% - 5% percent sell-off for the S&P 500. We believe it could easily reach the 5% level.

The rise in most of the world’s stock market indices today of between 0.5% and 1% suggests at least that they believe Clinton will win. However with all of these preparations they have put in place, this proves they are not that certain.

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