Americas

In a rollercoaster day for markets, the renminbi had a rocky start before gaining ground against the dollar as news on the US elections unfolded. But volatility is likely to continue in the coming days as markets get to grips with Donald Trump’s victory.

Intercontinental Exchange, the US based exchange and clearing business, has hired a global head for its ICE Data Services Connectivity and Consolidated Feed businesses.

Do not be reassured by the checks and balances narrative. The US presidential election matters desperately. Either the US will be in a position to keep leading the world, or it won’t.

Though none of them are ruling out a victory for Donald Trump, FIG market participants are positioned for Hillary Clinton to win the 2016 US presidential election. Banks could be ready to launch new trades on the same day as the result is announced.

Derivatives markets across asset classes are projecting increased confidence of a Hillary Clinton win in Tuesday's US presidential election, but also revealing concern that volatility could then evaporate from markets for the rest of the year.

The failure of El Salvador’s legislative assembly to approve the issuance of long-term debt has heightened the Central American nation’s liquidity risks to critical levels, with Moody’s slamming the sovereign with a double notch downgrade on Monday.

The largest financial services company in Honduras, Inversiones Atlántida, has begun meeting fixed income investors ahead of a potential debut dollar bond.

Trading volumes reported in the wake of the US presidential election suggest that November is off to a flying start for derivatives exchanges. But the Trump effect only begins to mitigate a pronounced slump in activity for some asset classes in October.

Equity capital markets are bracing for the US presidential election on Tuesday. Participants believe Hillary Clinton is narrowly more likely to win, but that stockmarkets around the world would fall if Donald Trump won.

Argentina’s return to international bond markets this year broke many records, and its after-market performance has been equally stunning. It has also changed investors’ concerns. Previously preoccupied with court rulings, an unpredictable government, legal technicalities and a curve comprising an assortment of complex instruments, bondholders now are looking at more conventional credit issues and can enjoy a normalised dollar curve with several liquid points. The buyside is now assessing inflation and inflation expectations, GDP growth and FDI, and — crucially — progress on the fiscal deficit.

Luis Caputo had been head of LatAm trading at Deutsche Bank and JP Morgan, but he’d never done a deal as important as the one facing him at the start of 2016. Few — if any — bankers ever do. Argentina’s finance secretary, known in the market as “Toto”, led the nation’s negotiations with holdout creditors, achieving a faster and cheaper resolution than most expected. This has left Caputo confident that the government will be able to do just as good a job in tackling the outstanding issues facing the economy.

Mauricio Macri’s government is having to find a fine balance between fiscal consolidation and suffering too much short term economic and political damage. Markets appear willing to finance gradual change, and economists back the government’s strategy, but improvements need to come quickly.