Infotech

Equity markets dream of a clear victory in US elections



Posted on Oct 12, 2020 at 5:52 p.m.Updated Oct 12, 2020, 7:18 PM

We had not seen such a weekly performance since July. After a particularly shaken September, against the backdrop of the resumption of the pandemic, Wall Street began October with a sharp rise. The Dow Jones thus posted an increase of 3.7% last week, the S&P 500 climbed by 3.84%, and the Nasdaq by 4.56%. The European stock markets are not left out with the best week since June, for example, for the CAC 40. Market volatility falls. The Vix – nicknamed “the index of fear” – which had risen to 33 points in the heart of the summer is now moving around 25 points.

How to explain this renewed investor confidence? In large part by the polls in the United States which, less than a month before the presidential election, make Joe Biden the favorite in the election. However, it should not be deduced that the markets are voting for the Democrat. “We continue to believe that the chances of getting a clear result, regardless of that result, are increasing, write analysts at JP Morgan. This would already be a positive element, in our opinion. “ In other words, it doesn’t matter whether the winner is Trump or Biden, as long as the outcome is clear.

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