A victory for Republican nominee Donald Trump would send stock markets in the United States, the United Kingdom and Asia down by 10 to 15 percent, according to a new economic analysis.
In a paper released Friday by the nonpartisan Brookings Institution, economics professors Justin Wolfers and Eric Zitzewitz tracked overnight trading during the first presidential debate last month between Trump and Democrat Hillary Clinton. They found that markets around the world surged as it became clear that Clinton had won the face-off.
“Markets believe this election will have huge ramifications for the global economy,” Wolfers wrote in a flurry of tweets breaking down his findings. “It’s not just about us; it’s about the world.”
See more of his analysis below:
The inverse ― that the likelihood of Trump losing would give markets a boost ― also appears to be supported by evidence.