Damani said the U.S. President's continued power could undermine the rules‑based system that has underpinned global trade—he pointed to recent tariff moves that have strained supply chains.
He warned that the election could trigger a spike in oil prices as geopolitical tensions over Iran increase, a move that could ripple across global supply chains.
Damani cautioned that a constitutional crisis could erupt if Trump refuses to cede power after the vote. "He may refuse to cede Congress," he said, citing Trump’s past statements about recounts in Alaska.
In India, the BSE saw a 2% dip in indices since the announcement, reflecting investor nervousness and the market’s sensitivity to U.S. political outcomes.
Analysts expect volatility to rise as traders reassess risk, and market makers are tightening spreads ahead of the election results.
The next week will see fund managers rebalancing portfolios, a movement likely to further pressure markets as uncertainty lingers.