Markets on heightened alert leading up to US polls

Concerns over how new president's policies may impact debt, inflation and interest rates

- Ven Sreenivasan

Markets appear to be getting nervous in the lead-up to the US presidential election.

This is understandable as the results will have policy implications not just for the US, but also the whole world.

Trade protectionism under a Donald Trump presidency will impact every country with trade links to the US, while higher taxes and spending under a Kamala Harris administration could impact the business sector.

There is also the fear that both candidates are floating policy proposals which could further widen the US debt, which currently sits at US$35.8 trillion (S$47.3 trillion), raising the prospect of higher interest rates.

Reflecting these concerns on Wall Street, the Dow Jones Average lost 2.68 per cent over the past week to end at 42,114.40 points.

The broader S&P 500 slipped 0.98 per cent to 5,808.12 points, while the tech-heavy Nasdaq edged 0.16 per cent higher to 18,518.61 as tech earnings came in strongly.

In Singapore, the Straits Times Index ended down 1.3 per cent for the week at 3,593.41 as it remained entrenched in its consolidation zone during the week, supporting the 3,580s after opening at a high of 3,640.28 in the week.

Institutional investors were net sellers on the Singapore bourse.

The iEdge S-Reit Index lost 3 per cent, while the trio of banks declined 0.7 per cent.

The biggest gainer last week was property construction firm Wee Hur, whose stock surged over 15 per cent on news regarding its purpose-built student accommodation portfolio in Australia.

The Australian Financial Review seemed to suggest that its 49.9 per cent partner in the portfolio, GIC, was looking to sell its share at A$1.6 billion (S$1.4 billion).

Wee Hur owns the remaining 50.1 per cent.

In February, these properties were revalued at about A$1.4 billion.

Meanwhile, the Federal Reserve's next move on interest rates remains a key focal point for the market.