The US presidential race did not provoke strong market reactions, but it was very intriguing.
US Federal Reserve Chairman Jerome Powell last week reiterated the importance of adopting a new economic stimulus package. In his opinion, the fresh package of measures can significantly help the economic recovery. Meanwhile, the US labor market began to show signs of a slowdown in the improvement in the situation: the number of applications for unemployment benefits increased again to 7.285 million.
The oil market was also difficult. Brent oil fell in price by more than 4% at the moment, however, the news about OPEC + plans to discuss an additional reduction in crude oil production led to a trend reversal. An additional positive factor was the sharp decline in US black gold reserves.
In the UK, the number of cases of COVID-19 has stabilized at 50,000. However, in many other countries, the incidents are increasing, which still carries the risk of a second lockdown.
The Reserve Bank of Australia kept the interest rate unchanged but promised to increase the volume of purchases of government bonds. The news triggered a short-term bullish trend for the AUD, which was supported by a decline in the country’s unemployment rate to 5.3%.
The conclusion to the US presidential race came on Friday when Biden surpassed Trump in Georgia and gained additional support in Pennsylvania. Probably, the next president of the United States will be a Democrat.
A fundamental view
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