Goldman strategists believe that the financial markets have moved a long way towards pricing in the U.S. election outcome, according to Bloomberg. The strategist points out that attention is now on vaccine progress in light of the worsening pandemic. Global stocks are also weighing on Joe Biden’s presidency, and higher optimism could raise prices despite Donald Trump’s refusal to concede.
- Goldman expects major stock indexes to rise and Cboe Volatility Index to drop to reflect news of an early, safe, and effective vaccine.
- There is likely dollar weakness, tighter credit spreads, and higher treasury yields following early vaccine news.
- Analysts predict Canadian and Australian dollars to benefit most in foreign exchange markets.
- Current asset prices reflect a probability of slightly more than 50% for early vaccine and significant delays could lead to downside risks-Goldman
Global stocks are mixed as the dollar weakens against the Euro, amidst falling volatility. S&P 500 is slightly down 0.029%, QQQ: NASDAQ is up 0.75%, DAX is up 2.05%, CAC 40 is up 1.72%, EURUSD is up 0.08%,VIX is down 10.77%
