Joe Biden finally made it into the White House in the third attempt. The ticket with vice presidential candidate Kamala Harris, the first woman in this office, reached more than 75 million votes - a historic record. Although one cannot (for the time being) speak of a blue wave, the result is clear with 290 votes for Biden and 214 for Trump. However, the incumbent president does not (yet) seem willing to give up power without a fight and is trying to take legal action against the final result of the elections. Meanwhile, the race for the majority in the Senate is going into overtime. In Georgia, for example, two runoff elections will not take place until January 5, 2021. If the Democrats win both open Senate seats, the Senate would be 50-50, with Harris as the new Vice President having the casting vote in the event of a tie. For the Republicans, after losing the presidency and the Democratic House of Representatives, this would be a real catastrophe.
In Asia, most stock markets opened the new trading week with strong gains in some cases. The (preliminary) final result of the US presidential election, which has been known since Saturday, gave investors confidence and the markets seem to be looking for further fiscal stimulus under the future US President Joe Biden. In Tokyo, the 225-stock Nikkei index rose by around +2.5% and in Hong Kong the Hang Seng index was up around +1.7% from Friday. On Wall Street, the American stock indices on Friday even before the announcement of Biden's victory by the major US media houses had changed very little and closed a profitable week without a clear direction. The Dow Jones Industrial closed with a moderate daily loss of -0.24% at 28 323.40 points, but recorded a solid plus of just under +7% for the week, with the leading index making up for the previous week's loss of around -6.5%.
While confirmed Covid-19 infections exceeded the 50 million mark worldwide and the number of deaths related to the virus reached 1.25 million, newly elected US President Biden promises to make the corona crisis a top priority. Elected Vice President Harris is to head a new corona task force with proven scientists and virus experts. In the US, more than 100 000 new Covid-19 cases are counted per day and the virus has already killed more than 230 000 Americans.
In the shadow of the US presidential elections, the labor market report published on Friday turned out to be clearly better than analysts had expected. According to the report, 638 000 new jobs were created in the economy as a whole in October. The market consensus was 530 000, and the two previous month's figures were also revised upwards by a total of 15 000 jobs. In a separate survey, the unemployment rate fell surprisingly sharply in October from 7.9% to 6.9%. Analysts had expected a much more moderate decline to 7.7%. Thus, the recovery on the labor market appears to be slowly continuing despite the ongoing dramatic pandemic situation.
|07:30||SZ||Unemployment Rate (October)||3.3%|
|08:00||GE||Exports (September, y/y)||+2.4%|
|08:00||GE||Imports (September, y/y)||+7.0%|
|09:00||FR||Business Climate (October)||101.0|
|10:30||EZ||Sentix Economic Perspectives (November)||-8.3|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, +41 44 250 78 59, E-Mail: email@example.com
Source: LGT Bank (Switzerland) Ltd.
Risk Disclosure (Disclaimer)
This publication is an advertising material / marketing communication. This publication is for your information only and is not intended as an offer, solicitation of an offer, or public advertisement to buy or sell any investment or other specific product. Its content has been prepared by our staff and is based on sources of information we consider to be reliable. However, we cannot provide any confirmation or guarantee as to its being correct, complete and up to date. The circumstances and principles to which the information contained in this publication relates may change at any time. Information that has been published should therefore not be understood as implying that no change has taken place since its publication or that it is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax-related or other consulting matters, nor should any investment decisions or other decisions be made on the basis of this information alone. It is recommended that advice be obtained from a qualified expert. Investors should be aware that the value of investments can fall as well as rise. Positive performance in the past is therefore no guarantee of positive performance in the future. Investments in foreign currencies are also subject to fluctuations in exchange rates. We disclaim all liability for any loss or damage of any kind, whether direct, indirect or consequential, which may be incurred through the use of this publication. This publication is not intended for persons subject to legislation that prohibits its distribution or makes its distribution contingent upon an approval. Any person coming into possession of this publication shall therefore be obliged to find out about any restrictions that may apply and to comply with them. In line with internal guidelines, persons responsible for compiling this report are free to buy hold and sell the securities referred to in this report.