IE 11 is not supported. For an optimal experience visit our site on another browser.

Stocks, Mexico Peso Bounce as Markets Score One for Clinton

World shares swung higher and the Mexican peso surged more than two percent on Tuesday, as investors awarded the debate to Hillary Clinton.
A picture illustration shows Mexican pesos and U.S. dollars banknotes in Mexico City
A picture illustration shows Mexican pesos and U.S. dollars banknotes in Mexico City July 6, 2015. REUTERS/Edgard Garrido
/ Source: Reuters

World shares swung higher and the Mexican peso surged more than two percent on Tuesday, as investors awarded the first U.S. presidential debate to Democrat Hillary Clinton over Republican Donald Trump.

"There's a thing called 'Trump thermometer'," said David Bloom, London-based global head of forex strategy at HSBC. "If you want to know who won the presidential debate, don't go to Twitter or Facebook. Just look at the dollar/Mexico peso."

A picture illustration shows Mexican pesos and U.S. dollars banknotes in Mexico City
A picture illustration shows Mexican pesos and U.S. dollars banknotes in Mexico City July 6, 2015. REUTERS/Edgard Garrido

Snap polls after the debate suggested Clinton had bolstered her chances. For markets the clear winner was the Mexican peso. It surged 2.3 percent having hit an all-time trough in recent days on concerns that a Trump presidency would threaten Mexico's exports to the United States, its single biggest market.

"Markets started to call the debate for Hillary within the first 15 minutes or so, with the Mexican peso surging in what is probably its busiest Asian session in years," said Sean Callow, a senior currency analyst at Westpac in Sydney.

Oil markets were also in flux as the world's largest producers gathered in Algeria to discuss ways to tackle a crude glut that has battered prices for two years now.

A source from Iran, where production is on the comeback after years of international sanctions, told Reuters it wanted 12.7 percent of any new OPEC output ceiling to help it reclaim its market share. Saudi Arabia has suggested it would need Iran to freeze its production for it to do the same.

Brent crude futures slipped 75 cents to $46.61 a barrel having jumped or 3.2 percent in the previous session. U.S. West Texas Intermediate crude which has seen a similar rise fell 60 cents to $45.80 a barrel.