Wall Street’s major index showed a big jump on Monday after recording its highest weekly fall since March as investors focused on the U.S. presidential election. In addition, the US dollar also recorded a surge against other currencies.
Market participants expect short-term trade turmoil and long-term policy shifts related to taxes, government spending, trade, and national policy. It depends on who will win the election, whether it is President Donald Trump or his Democrat challenger, Joe Biden.
At the moment Biden is leading the way in the national election. Still, the competition seems fierce in some countries in the United States that could favor Trump. Analysts believe that the election results will bring a shock in the stock and financial markets in the near future.
Investors are more inclined and bet that Biden can outperform Trump which is expected to provide massive fiscal stimulus and promote green energy. This policy could encourage increased demand for large and small industries in recent weeks.
The US dollar index, which measures the greenback against the major, recorded a 0.16% strengthening to the 94.190 exchange rate.
The pound currency managed to strengthen for a while before declining due to concerns over the curfew. The pound depreciated 0.31% to the exchange rate of 1.2902 against the US dollar.
This week's market focus also focused on the Federal Reserve's two-day policy meeting.
