Stocks in the U.S. climbed on Tuesday as Americans voted for their next President.
Although the polls still suggest that Joe Biden is leading the race to the White House, many expect the results to go down to the wire, and as such, market volatility has risen.
Investors embraced this uncertainty however, sending markets to a second consecutive day of gains. As of writing, the Dow Jones was up 2.08%, the S&P 500 climbed 1.84%, whilst the NASDAQ gained 1.87%.
Gains also came as factory orders rose 1.1% in September, after climbing 0.6% in August.
RBA cuts rates in Australia
Today it was announced that the Reserve Bank of Australia would be cutting interest rates, whilst also increasing its bond buying program to (AUD) 100 billion.
The RBA lowered its key interest rate from 0.25% to 0.10%, as forecasted by many market commentators, the move comes as the Australian economy continues to contract due to the COVID-19 pandemic. Although Australia itself has been one of the least infected nations, with around 29,000 cases.
Regarding today’s rate cut, the bank’s Governor Philip Lowe stated that, “Today’s decision reflects the Reserve Bank’s commitment to do what we reasonably can, with the tools that we have, to support the recovery of the Australian economy”.
The ASX 200 gained 1.93% on the news.
DAX rises despite Brexit trade disputes
European and British trade negotiators met on Tuesday as they looked to finalise a deal, however they left the talks no nearer to reaching an agreement.
The parties have so far failed to reach agreement on three main sticking points which are fisheries, fair competition and settling disputes.
A spokesperson for the UK government stated that, “There are significant gaps that do remain between our positions in the most difficult areas, and there is much work still to be done if we are to bridge those gaps.“
As of writing, both the DAX and FTSE 100 had risen by 2.55% and 2.33% respectively.
Quote of the day – “Never invest in any idea you can’t illustrate with a crayon.”Peter Lynch
TradeGateHub.com – #TradeWithCoach USA Politics Update for Nov. 3rd
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Senior Market Analyst