Financial Markets Daily Report05 November 2020
In the US, the race for the White House is still very tied. Joe Biden won Wisconsin’s and Michigan’s electoral votes as the last ballots in those states were counted, but the outcome of the election might not be decided for days.
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- In the US, the race for the White House is still very tied. Joe Biden won Wisconsin’s and Michigan’s electoral votes as the last ballots in those states were counted, but the outcome of the election might not be decided for days.
- In the economic data front, the final October PMIs were generally revised upwards in the euro area but they exhibited a slowdown in the pace of recovery (euro area Composite 50.0 from 50.4 in September; Spain 44.1 from 44.3).
- Labor market data also reflected this slowdown as Spain's Social Security affiliates rose by 114k in October. In the US, the ADP employment report showed that private employment rose in October by 365k (+753k in the previous month).
- In this context, stock indices rose across the board and yields on sovereign bonds fell, particularly so in the US.
- Today, the focus will be on the Federal Reserve monetary policy meeting, in which we expect no major changes. This morning, the BOE decided to increase the target stock of purchased UK government bonds by an additional £150bn.