US Election Affects Stocks Negatively

By Ikenga Chronicles November 4, 2016

US Election Affects Stocks Negatively

Stocks in the United States have fallen amid anxiety over the coming election, as traders await jobs data to gauge the strength of the world’s  supposed largest economy. Note that the pound surged after the Bank of England said ‎it is no longer expecting to cut interest rates this year.

According to Bloomberg News, the S&P 500 Index traded near a four-month low, on course for its longest losing streak since 2008.

Mexico’s peso climbed after two polls had Democrat Hillary Clinton leading Republican Donald Trump in the race for the White House. Sterling also advanced after a court ruled the UK must hold a vote in parliament before starting the countdown to Brexit.

Oil fell below $45 a barrel after a record surge in US crude inventories. Equities have struggled to find direction amid worries about the implications of the US election, the trajectory of interest rates and mixed corporate earnings.

Investors were unmoved by the Federal Reserve’s widely expected decision to stay put on interest rates last Wednesday.

Ahead of tomorrow’s monthly payrolls report, a reading showed filings for unemployment benefits unexpectedly rose to the highest level in almost three months.

“Any bounce now is going to be treated as suspect given the jobs report tomorrow and the election Tuesday,” said Frank Cappelleri, executive director at Instinet LLC in New York.

“We’ve seen plenty of solid openings over the last couple of weeks. The problem is the intra-day action, which is discouraging.”

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