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Markets Grow on Support Hopes from G7 Central Banks

The winner of the US Presidential Race is still uncertain, and vote count continues. Both Trump and Biden say they are on their way to victory, but this confrontation promises to escalate into lawsuits and further counting of votes. The same, nosetonose race is taking place in House and Senate elections.

Biden has some advantage in the presidential race, as he holds 264 electoral votes against 214 for Trump. However, the Democrats are far from a complete victory. The socalled Blue Wave has not materialised. It seems that the Senate is being left to the Republicans while the Democrats lead in the House of Representatives is set to decrease. This adjustment will hinder the progress of the relief package, which continues to depend on the ability of the opposing parties.

Previously, this scenario was assumed to be the most dangerous for markets. But despite the strong growth shown by stock indices, we need to rethink how different actual investor reactions can be.

Many observers note that demand for stocks and oil signs of optimism went hand in hand yesterday with the decline in US government bond yields and the poor performance of gold signs of investor caution.

In our view, we should not look for clear market signals of total optimism or, on the contrary, signs of caution in the movements of the past day. The strengthening of purchases should be linked to deferred demand. In the last few weeks prior to the elections, American assets were under pressure, creating pentup…

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