SP 500 futures fell and Treasuries rose on concern the U.S. is heading for a contested election after President Donald Trump called for the Supreme Court to intervene. Contracts on the SP 500 sank 0.4, erasing an earlier advance. Tenyear Treasury yields dropped to 0.77 and the dollar advanced gainst peers. The offshore yuan and Mexican peso retreated and gold slipped. European stocks opened lower. Trump falsely declared early Wednesday he had won reelection against Democratic nominee Joe Biden, even as several battleground states continued to count votes.
The comments sent a shockwave through global markets that have been anxious over the prospect of a drawnout legal battle for the U.S. presidency. While Biden had solid lead in the polls, its becoming clear that the race is going to be far closer than expected.
Earlier, Biden said he feels good about his chances to win the presidency, cautioning supporters that it would take time to finish counting the votes. Early prospects for a quick resolution to the U.S. election have given way to the reality of an extended process, not only with regards to the White House but also the Senate, said Ian Lyngen, a strategist at BMO Capital Markets. Volatile price action can only be expected to persist for the time being, at least until the path forward becomes clearer.
These are some key events coming up
EIA crude oil inventory report on Wednesday.
Federal Reserve policy decision on Thursday.
The key U.S. nonfarm…