Greetings,
Equities: A “blue wave” is not likely as Republicans seem to retain Senate control.
Here is what this means for the markets. Republicans in the Senate have no appetite for a massive stimulus bill.
With the year-end income cliff approaching (see this chart/comment from Oxford Economics), the Fed is now more likely to step in with a larger QE package.
Credit: The yield on US high-yield bonds hit the lowest level since February.
Emerging Markets: The Turkish lira resumed its decline. A Biden White House is not the best outcome for Erdogan.
China: China’s stock benchmark is in the upper end of the trading range again. Will we see a breakout (perhaps based on better trade relations with the US under the Biden administration)?
Eurozone: The options market’s sentiment on the euro has soured.
Food For Thought: Trending Investopedia articles leading up to the elections:
Edited by Daniel Moskovits
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