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Swissquote Launches Fintech Tool Based On US Presidential Scenarios
Josh O Neill
27 October 2016
has launched a service allowing investors and traders to speculate on stocks and currencies that are likely be impacted by the outcome of the US election. The online bank has developed a predictive analytics tool in collaboration with École Polytechnique Fédérale de Lausanne to provide real-time web polling information on each candidate. This, in turn, will track public opinion to predict the outcome of the elections in real time. The poll results will be publicly available on a dedicated website. Investors will be able to use the analytics tool to support their investment decisions. The bank has put together two different portfolios of stocks that will likely benefit from a Clinton or Trump victory. For Clinton, stocks have been selected from the renewable energy, defense and healthcare sectors. For Trump, the bank has chosen stocks from International Trade and areas affected by changes in immigration and energy policy. Swissquote’s Hillary and Donald US Election Foreign Exchange (Forex) Baskets consist of different currency pairs, which are increasingly correlated to poll results. These include the Mexican peso, the Canadian dollar, the Chinese yuan and the Japanese yen. Currencies and their exchange rates are highly sensitive to the US election and often fluctuate in reaction to single statements made by the candidates, noted Swissquote. “The candidates have been forced to choose extreme positions to differentiate themselves and this has increased the probability that the outcome of the election will have real effects on financial markets,” said Peter Rosenstreich, head of market strategy at Swissquote. “For the next few weeks, we anticipate that financial markets will become increasingly sensitive to every move the candidates make, which will only increase the effect on global portfolios.”