HSBC London: Head of currency strategy comments on US election

The US presidential race is being ignored by many investors who are more concerned about the financial markets and believe that if it be Barack Obama or John McCain who sit in the white house both of them would work to rescue the ailing economy according to a strategist at HSBC Holdings Plc.

The global head of currency strategy at HSBC in London, David Bloom has said that this is the least followed US election that he can remember and that the events in the markets are overshadowing the election.

Globally, more than $11 trillion has been lost off the market values of shares this month, this accounts for around a third of the total value wiped off stocks this year, this came as $681 billion of losses and writedowns by banks started the a freeze in the credit markets. It’s likely that the MSCI World Index will see its worth month since records began in 1970.

It’s widely expected that central banks around the world will lower interest rates. Although experts have warned that even if we do get rate cuts it’s not going to change things instantly.

Source: Bloomberg