Overseas Headlines – November 4, 2020

United States:

Volatility Grips U.S. Stock Futures with Vote Outcome Uncertain

“Extreme election night volatility persisted in U.S. equity futures, with S&P 500 contracts swinging between gains and losses, as investors worked to price in shifting odds for Donald Trump’s re-election and control of the Senate, a potentially protracted vote count and the implications for economic stimulus. December contracts on the benchmark equity gauge swung from a gain of 2.1% to a loss of 1.3%, only to bounce back to a 0.6% advance by 06:50 a.m. in New York. Futures on the Nasdaq 100 Index, a defensive trade all year, were up 2.4%. The dollar was also on a roller-coaster ride, surging as much as 1% before erasing most of its gains, and Treasury yields slumped, with the 10-year benchmark down to 0.79%.”



BOE to Counter Double-Dip Contraction Risk with Fresh Stimulus

“The Bank of England looks certain to fire another burst of monetary stimulus this week as new coronavirus lockdowns leave the economy facing a third quarter of decline in 2020. Any doubt that Governor Andrew Bailey and his colleagues might delay boosting their bond-buying program when they meet this week was effectively erased with Prime Minister Boris Johnson’s announcement of a month long closure of non-essential shops and hospitality venues in England.”



U.S. Flails in Election Toss-Up While China Flexes Economic Grip

“On one side of the world on Wednesday, the government of a big economy was busy flexing its power over commerce and capital markets. On the other side, its trade war rival struggled to prevent political chaos from overwhelming the governing part. While the U.S. waits for a result in its most fractious election in decades, China’s President Xi Jinping is taking to the stage in Shanghai to spell out his vision for China’s economic future.”




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