Investing.com - Here are the top five things you need to know in financial markets on Tuesday, September 27:
1. Markets declare Hillary as winner of first U.S. presidential debate
Democratic nominee Hillary Clinton appears to have edged out her Republican opponent Donald Trump in the first presidential debate, based on analysts' take on the market reaction.
Online betting companies shortened the odds on a Clinton win in the wake of the Monday night debate, leaving her as the clear favorite among bettors.
Traders are mostly expecting Democratic candidate Hillary Clinton to win the presidency and have not factored in the implications of a victory for Donald Trump. The idea of Trump in the White House is a worrying one for some investors who balk at his populist, unpredictable style.
Recent polls have shown a tightening race with just around six weeks to go until the November 8 election. The next presidential debate is scheduled for October 9, with the third and final clash set for October 19.
2. Mexican peso jumps 2% after U.S. debate
The Mexican peso, seemed as a market barometer of the U.S. presidential election due to its close trade ties with the U.S., jumped more than 2% against the greenback to 19.436 at one point, before giving back some gains to trade at 19.607 during morning hours in New York, up 1.35% on the day.
The peso has hit record lows in recent sessions on concerns that a Trump victory would threaten Mexico's exports to the U.S., its single biggest market.
3. Oil sinks after Saudi Arabia casts doubt of output deal
Oil prices were under pressure early Tuesday after Saudi Arabia appeared to play down expectations for any supply policy decision during Wednesday's meeting.
Saudi Arabia's Energy Minister Khalid al-Falih said on Tuesday that talks among OPEC and non-OPEC oil producers in Algiers this week are consultative, casting doubt on the chances of any policy decision during the meeting. His comments follow similar remarks from Iran's oil minister on Monday.
U.S. crude was down 73 cents, or 1.6%, to $45.20 a barrel, while Brent sank 85 cents, or 1.75%, to $47.09 a barrel.
4. Deutsche Bank shares plunge to another record low
In Frankfurt, shares of Deutsche Bank (DE:DBKGn) dropped 3.1% to touch an all-time low of €10.20 for the second day in a row. That drop came after Deutsche shares sank 7.5% on Monday amid media reports that German Chancellor Angela Merkel would not support providing state aid for the country’s largest lender.
Merkel also declined to intervene in Deutsche's legal battle with the U.S. Justice Department, which earlier this month announced it may seek up to $14 billion from the bank to resolve investigations into crisis-era mortgage securities.
Shares of the German banking giant are down nearly 60% so far this year amid concerns over the lenders weakening financial health.
5. Global stocks turn lower as U.S. debate cheer fades
U.S. stock index futures pointed to modest gains at the open on Tuesday morning, with the Dow futures well off the session high as a U.S.-presidential-debate-induced rally ebbed.
Meanwhile, European and U.K. stocks turned lower in mid-morning trade, with Germany's DAX down 1%, as weak sentiment towards the region's banking sector weighed.
Earlier, Asian shares rallied, as investors took heart from an apparent win for Hillary Clinton over Donald Trump in the first U.S. presidential debate.