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ZFX: Uncertainties maintained! Investors bet on Biden’s win, with divided US Congress
On Friday, investors are cautious watching the final results from the US election, even the early birds have already bet on Biden’s win these two days. Based on the latest record, Biden has racked up 253 electoral votes, closed to the White House. Few battleground states such as Arizona and Pennsylvania are the focus so far, and the prediction is favored to Biden side.
On the other hand, the Fed kept interest rates unchanged near zero on Thursday, saying that the US economy levels remain “well below” due to the coronavirus pandemic, urging the support of fiscal policies. Stocks in Asian markets were just mixed on Friday as the optimism faded and investors continued to wait for the ongoing development from the US side.
Gold price retraced a bit on Friday after a $50 surge. Due to the hopes for more Fed support and a massive relief bill come from Biden’s administration, investors bet on commodities and lower the safe haven demand of dollar. However, the dollar steadied against many currencies on Friday, as traders turn to be calm and review the portfolio based on the current situation.
As it is expected to be a divided US Congress, Republicans will retain control of the Senate, massive stimulus is not likely. The European Stocks were also mixed in the early trade, as some of the funds were turning the eyes on the severe pandemic. Travel and leisure sector were lower as those countries have implemented new round of the lockdowns.
This weekend, counting of ballots from key swing states of Georgia and Pennsylvania, of course will be one of the big uncertainties. Not only this, Trump is mounting legal challenges to the vote counts, causing even more unpredictable influence over the markets.