The markets remain focused on vote counting in the U.S. election. Joe Biden is narrowing the Republican leads in the swing states of Georgia and Pennsylvania and votes are still being counted in Nevada and Arizona as well. Biden is increasingly confident saying “We have no doubt, when the count is finished, Senator Harris and I will be declared the winners”.
On Thursday, European stocks ended on a firm note extending gains to yet another session, as investors reacted positively to U.S. election news. Worries about coronavirus spread and tighter lockdown restrictions across the continent continued to weigh on sentiment but that did not result in any negative impact on the broad market. US stocks moved sharply higher extending the rally seen over the two previous sessions.
The Fed left the target range for its federal funds rate unchanged at 0-0.25%, as policymakers took a wait and see approach amid US presidential election uncertainty. The central bank also said it will continue to increase its holdings of Treasury securities and agency mortgage-backed securities over coming months. Officials warned that the ongoing public health crisis poses considerable risks to the economic outlook over the medium term, and pledged to use its full range of tools to support the US economy in this challenging time.
The European Commission lowered its GDP forecasts for 2021, saying that the resurgence of the pandemic in recent weeks is resulting in disruptions as national authorities introduce new public health measures to limit its spread. The EU executive said the bloc would grow by 4.2% in 2021 from its unprecedented coronavirus recession this year, compared with early July estimates of a 6.1% expansion.
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