Tuesday 13th October 2020
The US senate is seemingly preoccupied with pushing through Amy Coney Barrett as Supreme Court nominee, casting aside any bandwidth for fiscal stimulus talks. Yet US equities have bounced higher today. NAB’s Ray Attrill says there’s no clear logic for enthusiasm amongst share investors, except for the hopes that a Biden win will see more fiscal stimulus; but it would also mean more regulation for tech companies, and they’ve been leading the charge overnight. Equally as curious, the pound has risen despite rising COVID cases, more lockdown measures and no Brexit progress. It’s perhaps easier to explain the fall in the Aussie and NZ dollars, pulled down with the PBoC’s measures to reduce the value of the Renminbi.