Goldman Sachs predicts Clinton win on Tuesday

US investment bank Goldman Sachs says that it expects Hillary Clinton to win the presidential election on Tuesday, and has suggested that she may do so with a larger margin of victory than expected.

Polls at this late stage indicate that Clinton has an average lead of two percentage points over Donald Trump as campaigning enters its intense final hours.

Goldman also added that the Democrats would win a slim majority in the Senate, as well as the Republicans having a vastly reduced majority in the House of Representatives.

"Our central election expectation continues to be that Sec. Clinton wins the White House, with a slim Democratic majority in the Senate," Goldman's research note said.

"Prediction markets assign a higher probability to a Clinton win than polls would suggest. This is not surprising, since early voting in some of the marginal states like Nevada suggests a much higher probability that Sec. Clinton will win than polls in those states do."

On Monday, financial markets have seen a stampede of buying, with US assets being bid heavily, according to Chief Market Analyst at IG, Chris Beauchamp. This would also indicate investor confidence in a Clinton victory.

"US assets have been heavily bid throughout the day, as the nine-day selloff is banished to distant memory," Beauchamp said.

"With around 36 hours to go until the result becomes known, there is plenty of potential for upsets however, and we may see the bullish move falter tomorrow if the battleground states remain in close contention."