European inventory markets do not look higher Monday, promoting off as virus numbers are on the rise.
Whereas shares are getting hammered, the safe-haven US greenback, measured by the ICE US Greenback Index is up 0.9%. US Treasury bonds, additionally a security funding, are additionally in excessive demand Monday, and the 10-year bond yield dipped to 0.66%. Bond costs and yields transfer reverse to at least one one other.
So every part will probably be wonderful, proper? Not so quick: There are loads clouds on the horizon.
The Gridlock in Washington has buyers apprehensive about when Congress will agree the subsequent — and far wanted — stimulus invoice to spice up the economic system. To this point, negotiations have not led to a lot, and tensions are rising with the presidential election simply six weeks away.
Washington is now arguing about whether or not a decide to fill Ginsburg’s seat needs to be voted on earlier than the election or after. Within the latter case the stakes within the presidential election grow to be even larger and will make it extra possible that the consequence will probably be contested, Wizman mentioned.
Market specialists have warned that volatility will probably be excessive in direction of the tip of the yr and across the election, particularly as a result of many anticipate the winner will not be identified instantly.