Markets focus on US election

Markets focus on US election

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.

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