Thursday 5th November 2020
US equities have climbed as the US goes through Wednesday without a clear winner in the election. It seems likely Biden will win, with five key states still undecided and millions of votes still to be counted. The Senate looks less clear and NAB’s Gavin Friend suggests this explains the behaviour of the bond markets, without the fear of unbridled fiscal spending. Conversely, of course, a delayed election result also delays the passage of any further fiscal stimulus package. Will that influence the Fed’s decision on Thursday – one of two central banks making announcements (the other is the Bank of England). Important those these meetings are, all eyes will remain on the vote counts, and whether President Trump is serious in his proclamation to challenge the result (if he loses).