On average, the Dow Jones , S&P 500 and Nasdaq 100 suffered their worst week in over 7 months ahead of the US Presidential Election. This is as the VIX ‘fear gauge’ spiked the most since June over the same period. Rising volatility and a premium for safety propelled the anti-risk US Dollar and Japanese Yen . Anti-fiat gold prices suffered.
A combination of rising Covid-19 cases, an erosion of US fiscal stimulus hopes and a contested election have likely worked together to deteriorate risk appetite. The sentiment-linked Australian and New Zealand Dollars underperformed. Growth-linked crude oil prices declined the most since the middle of April.
All eyes turn to the November 3rd election as markets will try to digest what the outcome could mean for another fiscal package. The Senate adjourned for recess this past Monday until perhaps November 9th. Without its blessing, policymakers won’t be able to get […]
November 2, 2020 Published by StockMan