Economists advise investors in particular to be careful in making investments to avoid drifting into ‘confusing’ market currents as election competition is likely to continue for several days.
The U.S. election winners have yet to be completed on Wednesday so far. Donald Trump is seen winning in several major states in focus, Democratic candidate Joe Biden is still expressing his confidence to win this election. Trump has also made the statement that he has won the election while millions of legitimate votes are still in the works. Most market players expect Biden to win.
The S&P 500, Dow Jones and Nasdaq 100 indexes jumped more than 1%. The dollar index remained strong with an increase of over 0.10% against most major currencies.
Gregory Daco who is the chairman of the U.S. economy. at Oxford Economics advises that market players should be very careful to avoid being carried away by the current of sentiment with some countries still counting votes.
However, Daco also gave a personal opinion, if everything goes well then we can expect some market reaction based on the proposal by the presidential candidate.
According to him, if Biden wins, then green energy, infrastructure, trade and agriculture companies are likely to make a profit. On the other hand, if Trump wins then the banking, defense, pharmaceutical and biotechnology sectors can make a profit.
Both candidates expect to get 270 votes. The market focus shifted to the results of the ‘Rust Belt’ states although the results may be announced later.
