Global stock markets continued to rally, despite the lack of a result in the US Presidential Election. It appears that Biden is likely to win the US election, but it remains close and subject to extreme legal challenges. The rally is based on a result and the market preference for split Government. It looks as though Republicans will hold the US Senate and the Democrats will retain control of the House of Representatives, while the Presidency is yet to be determined.
In Europe markets also continued to rally strongly despite the virus infection rates and economic lockdowns. The Bank of England left rates unchanged, but added a further 150 Billion to QE, citing the double damage of virus lockdowns and Brexit, to GDP growth. The growing global risk appetite has pushed the safe haven US Dollar to retreat, allowing the EUR to regain 1.1800, while the GBP charged back through 1.3100. The Challenger Jobs report cited a continuing fall in job cuts, while US Weekly Jobless Claims tumble.
The retreating reserve allowed the commodity currencies to continue to book gains, with the AUD rising to 0.7250, while the NZD broke above 0.6750. NZ Business Confidence continues to flail, while Australian Trade data showed a sharp improvement, boosted by a surge in Exports.
The US election remains the focus of markets and the virus and downstream consequences takes a back seat.