Market volatility to last until final US election results: analysts
07:00
Uncertainty about the final results of the US presidential election will spoil the moods in the financial markets even for several weeks. We still have to wait with the zloty appreciation, not only due to geopolitical risk. Further decisions regarding the fight against the Covid-19 pandemic will be crucial, analysts said in an interview with ISBnews.TV.
"Yesterday on the American stock exchanges, but also on the Warsaw stock exchange, we saw increases. Markets tried to discount the so-called 'blue sweep', i.e. the takeover of full power by the Democrats – the White House and the US Congress. Now it turns out that it may be different and perhaps the Democrats will not win the Senate, and Donald Trump will remain in the White House," Marek Rogalski, chief currency analyst at DM BOŚ, said.
According to Tickmill analyst Marcin R. Kiepas, the nervousness in the markets is understandable as political risk will remain for several days or even weeks.
"The financial markets reacted nervously. There were a lot of large fluctuations overnight because the base scenarios that were playing yesterday collapsed quite significantly. These scenarios assumed a clear win of Biden, which could not be questioned in court and which will close the topic of the election today. Some investors played for the Democrats to take over the US Senate, which would later mean a large stimulus package for the US economy, but also good cooperation between the President and Congress,” Kiepas told ISBnews.TV.
The current state of affairs in the US is 253 electoral votes for Joe Biden and 213 for Donald Trump. It takes 270 electoral votes to win the White House.
(ISBnews)
