The election results of 2024 have moreover proven the effect of a country’s political state on its market. India, Mexico, and South Africa have experienced major political changes, and they have simultaneously seen a downfall in the monetary market.
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SOUTH AFRICA
After the ruling party, the ANC failed to gain a majority, the idea of a coalition filled the gap. But this led to negative effects on the market. Over the weekend and the start of this week, the fall comes out to be a total of 3.5%. The current Rand to Dollar rate is 18.71 Rand per Dollar.
MEXICO
In Mexico, it’s the first time that a woman president has been elected. After Claudia Sheinbaum Pardo came to power, the market of the country was in trouble. The fall was 5% which has been the worst after the massive drop at the start of the COVID-19 pandemic. Back then the drop was 17%, the drop might seem much less compared to that but the times have changed and this single-digit number is still a huge loss to the country’s economy.
INDIA
The latest addition to the political and market challenges is the election result of India. After the ruling party of Narendra Modi failed to gain the majority of votes, the question of what next has been laying heavy on the citizens of India. This has affected and converted into numbers in the share market of the country. The Sensex went down to 5.74% and the NIFTY 50 clashed to 5.93%. This was the status on 4th June 2024, the result day. What finally happens can only be known once new decisions are made and the storm settles down.
INTERNATIONAL VIEW
Investors from across the globe have been largely investing and buying into India and Mexico. The numbers of the same have decreased in China. Now the fall in both countries’ markets will affect how the investors plan to take the deal ahead. Whether or not their ambition to sell these investments will come true is something only time will tell.
The U.S.
Next up in the possibility of turning the market upside down is the election results of the US. With the ups and downs there, predicting the results is becoming difficult from time to time. One of the reasons for this uncertainty is Donald Trump coming ahead and promising new trade traffic and anti-China measures. For the final curtain, we all will have to wait patiently. How any of it affects the US market and the global market overall is something that will turn heads.
OVERALL OUTTAKE
The relationship between the monetary market and the political structure of a country has been there for a long time. Since everyone is now globally connected, the effect of the same seeping into other countries also makes sense. 2024 has brought in a lot of new surprises for the world in the political domain and there are many yet to be revealed. How the sweet words of a politician will take on the commoner’s pocket is a match much awaited to unravel.
