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Added on the 02/08/2019 08:33:08 - Copyright : Wochit
Investors in markets from Brazil to China are on edge ahead of the U.S. election, which could affect global trade deals that have given developing nations an enormous boost. As Tara Joseph reports, investors worry a Donald Trump win will bring extreme volatility for both currencies and companies, but that doesn't mean they're backing Hillary either.
World stocks, the dollar and oil fall as the tightening U.S. presidential race rattles investors. Hayley Platt reports.
Another voice has joined the chorus of business leaders running away from their support of US President Donald Trump. Business Insider reports billionaire venture capitalist Doug Leone was once one of Trump's strongest supporters in Silicon Valley. However, Business Insider reports he now says he believes Trump was responsible for inciting the riots. After last week's horrific events, President Trump lost many of his supporters, including me. Doug Leone Managing Partner, VC Sequoia Capital Global Leone has donated to many Republicans including at least $2,700 in 2018 to Josh Hawley. Hawley is the Republican Senator from Missouri who voted against certifying the election results after the riots.
On Friday, US stocks made gains as hopes for a peaceful transition to the Biden administration offset concerns about soaring COVID-19 cases. Business Insider reports S&P 500 closed at a record high. On Thursday Pres. Donald Trump said he'd hand over power when the Electoral College certifies President-elect Joe Biden as the winner of the 2020 election. The US reported 125,082 new coronavirus cases on Thursday. That brought the seven-day average to 163,831, according to the COVID Tracking Project. Deaths topped 254,000, and hospitalizations jumped above 90,000. The stock market's "fear gauge" fell as low as 19.51 on Friday, dropping amid low trading volumes to its lowest level since the pandemic began.
On Tuesday, global stocks jumped after Donald Trump authorized President-elect Joe Biden's presidential transition process to begin. On Monday, Trump took a significant step toward acknowledging the election result. However, Business Insider reports, he is still convinced he and his allies can continue to contest the outcome. Another key factor driving the boost is Biden's planned nomination for former Federal Reserve chair Janet Yellen as Treasury Secretary. AstraZeneca's vaccine is helping drive oil prices to their highest levels since March.
An RBC Capital Markets analyst says that based on recent options trading, the market believes the next US president will be known by November 6th. However, Amy Wu Silverman, RBC's head of derivatives strategy, believes the risk of a contested election is 'severely underpriced' in the stock market. According to Markets Insider, the stock market is eagerly waiting for Congress to pass the next fiscal stimulus package. However, no progress will be made until a clear winner of the election is determined. We in the options market think about tail events, my worry now is that maybe a situation coming up where there is not a clear winner for a while. Amy Wu Silverman, Head of Derivative Strategies RBC Capital Markets A tail event is an unpredictable and rare market outcome that could come as a shock to investors.
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