Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stocks mixed with U.S. presidential outcome still uncertain

EconomyNov 06, 2020 04:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A man wearing a protective face mask stands in front of a screen displaying world stock indexes outside a brokerage, amid the coronavirus disease (COVID-19) outbreak, in Tokyo

By Tom Arnold and Hideyuki Sano

LONDON/TOKYO (Reuters) - Global stocks were little changed but near a record high while the dollar and U.S. bond yields stayed sluggish on Friday on bets that a divided U.S. Congress would hinder government borrowing, which could pave the way for even more central bank stimulus.

Investors expect Democrat Joe Biden will beat President Donald Trump but Republicans will keep control of the Senate, allowing them to block Democrat policy such as corporate tax hikes and debt-funded spending on infrastructure.

"From here, we believe the impact of the presidential result should be relatively small," said Lars Kreckel, global equity strategist at LGIM. "Whether Biden or Trump are in the White House, governing with a Congress that is very likely to be divided would be difficult and mean very little policy that could significantly move equity markets would be passed."

A sense that a Biden presidency will be more predictable than Trump's is also underpinning risk sentiment, even though investors saw no quick rapprochement between the United States and China on trade and other issues.

Biden had a 253 to 214 lead in the state-by-state Electoral College vote that determines the winner, according to most major television networks, putting him closer to the 270 Electoral College votes needed to win.

In Pennsylvania, which has 20 electoral votes, Biden cut Trump's lead to just over 18,000 by the early hours of Friday. His deficit in Georgia, which has 16 electoral votes, shrunk to about 450.

MSCI's all-country index of the world's 49 markets was flat after gains earlier in the week, still close to the record reached in September.

Europe's main stock index opened 0.4% lower, with investor sentiment dimmed by the economic toll of new lockdowns in Europe to contain the coronavirus. Italy and France registered record numbers of COVID-19 cases.

Japan's Nikkei average rose 0.9% to a 29-year high while MSCI's broadest gauge of Asian Pacific shares outside Japan rose 0.3%, near a three-year high..

U.S. S&P futures dropped 0.6%, a day after the underlying stock index rose 1.95%.

Graphic: Stock market from Election Day to inauguration - https://graphics.reuters.com/USA-STOCKS/ELECTION/yzdpxamygvx/chart.png

Trump's attempts to pursue lawsuits challenging elections in several states have so far done little to change expectations of the outcome.

Still, some market players are wary of street protests getting violent, after Trump claimed the election was being "stolen" from him.

U.S. bond yields drifted lower, with the 10-year Treasury yield falling to 0.773%, below the pre-U.S. election level on Tuesday. It had struck a three-week low of 0.7180% on Thursday.[US/]

The Federal Reserve kept its monetary policy loose and pledged to do whatever it takes to sustain a U.S. economic recovery.

With COVID-19 raging in the United States and parts of Europe, many investors assume more monetary stimulus is inevitable.

The Bank of England expanded its asset purchase scheme on Thursday and the European Central Bank is widely expected to announce more stimulus next month.

Investors also focused on the prospects of stalled talks on a U.S. coronavirus relief package restarting.

"We still anticipate that there will be a fiscal package in excess of $1 trillion next year," said James Knightley, chief international economist at ING Group (NYSE:ING) in New York.

"This stimulus, when combined with a long-anticipated COVID-19 vaccine, can really lift the economy and drive growth. We consequently remain very upbeat on the prospects for 2021 and 2022."

In currency markets, lower yields undermined the dollar. The dollar index touched a two-month low of 92.459.

The euro traded at $1.1840 while the offshore Chinese yuan climbed to 6.6000 to the dollar.

A weaker dollar supported the Japanese yen, which rose to 103.43 yen against the dollar overnight. It was steady in early European trade at 103.45 yen.

Graphic: Dollar falls to 2-month low - https://fingfx.thomsonreuters.com/gfx/mkt/dgkvljrmwvb/USD.png

Gold, which is used as a hedge against inflation in an era of ultra-loose monetary and fiscal policies, fell 0.3% to $1,942 per ounce after jumping over 2% overnight. [GOL/]

Even bitcoin rode high, gaining 10% on Thursday and hitting a high last seen in January 2018.

Oil prices fell as fresh lockdowns in Europe to contain the coronavirus darkened the outlook for crude demand. Brent crude was down 1.2% at $40.45 a barrel. West Texas Intermediate futures were down 1.3% at $38.27 a barrel.

Stocks mixed with U.S. presidential outcome still uncertain
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
TL Chan
TL Chan Nov 05, 2020 11:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
US voters data were hacked before this election, and US voters can vote in any states, right! So don't tell me the hackers and the big guy won't use these fake votes! Only st*p*d will believe the hacking is for kiddy play!Show me you could dig out those fake votes, only then I start trust Democrats again!
Daniel Hodel
Daniel Hodel Nov 05, 2020 11:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Stay in your lane, and your country. You’re lucky to have Trump for 4 years. Your friends at ICBC bought another floor in Trump tower, & we will make sure you pay America. Not Trump.
TL Chan
TL Chan Nov 05, 2020 11:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Who said CCP cannot make DHS watermarks? With hacked dead voter data, and extended mail-in deadline long after 3 Nov, injecting fake votes, to Democrats is easy peanuts !
TL Chan
TL Chan Nov 05, 2020 10:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The voting system is heavily corrupted by Democrats ! How could some state can wait for mail-in votes coming in late as 10 Nov 2020. Everyone know there are massive quantities of made-in-China fake green cards and driving licenses in US, fake postal chop is much easier and cheaper! Who can check to dig them all out. As a matter of fact, no one such fake thing got digged out, that is the scarry parts, since it is impossible to be total non existence of these fake stuff. The only reason is obvious, all these states in dispute are only Demicrats territories, the corruption or power structure would not allow any decent people to dif out the truth and evidence, it is just too hard, when the corrupted side are so experience and stone handle controlled the vote counting machines !
Thom Miller
Thom Miller Nov 05, 2020 10:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
To Dietmar....in this country there IS a vote-counting time limit. We call it “count every single legally made vote until every last vote is counted.” I believe in your country you call it “count every single vote until our dictator leader wins and then stop counting.”
Dietmar Stahl
Dietmar Stahl Nov 05, 2020 9:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
There should be a time limit of vote counting.
Paul Browning
Paul Browning Nov 05, 2020 9:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The pandemic has created a unique challenge for running an election.
tony thai
tony thai Nov 05, 2020 9:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
there is. 3 days
Dietmar Stahl
Dietmar Stahl Nov 05, 2020 9:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Election circus.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email