Markets focus on US election

Markets focus on US election 150 150 Realm

The US presidential election is the main event this week. Investors are concerned about the outcome on Tuesday and any potential dispute following the result which would delay a new coronavirus stimulus bill being passed. Joe Biden leads the polls and early voting hit record levels.

US stocks booked their worst week since March last week as rising coronavirus waves in several parts of the world, lacklustre earnings and dim stimulus prospects weighed heavily on sentiment.

Concerns about Europe’s recovery sparked a wave of selling last week and on Thursday, the ECB signaled more monetary stimulus might be delivered as soon as December after President Christine Lagarde warned that risks to the bloc’s economic outlook were “clearly” tilted to the downside.

On Saturday, England became the latest country to have nationwide lockdown restrictions imposed by its government, this begins on Thursday.

The official NBS Non-Manufacturing PMI for China increased to 56.2 in October 2020 from 55.9 a month earlier, signaling the fastest growth in the service sector since October 2013 as the economy recovers further from the COVID-19 crisis.

Disclaimer:  ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy. This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’