By Noreen Burke
Investment.com – A win for Democrat Joe Biden in the US presidential election will likely alleviate some anxiety in financial markets this week even as President Donald Trump refuses to give in and promote legal struggles against results. However, with Senate control still in the air and new resurgence in viral cases, market risks remain and prospects for additional stimulus before January are unlikely. out. Investors will be watching the arrival of several Federal Reserve officials, including Chairman Jerome Powell, over the weekend. Meanwhile, the earnings season is starting to go down, but there are still dozens of companies set to report on and Brexit talks entering extra time. Here̵7;s what you need to know to start your week.
- Biden was elected president of the US
Major networks declared Democrat Joe Biden the winner of Saturday’s US presidential election and although incumbent President Donald Trump said he would oppose the outcome in court, chances of a turnaround His election results were very small.
The US stock market recorded its biggest weekly gain since April last week, when Biden bets will win and Republicans will hold the Senate. That scenario would create a firmer hand in the Oval Office and Congress would prevent Biden from implementing tax increases or more new regulations.
As a result, the investor’s focus will now shift to two Senate races in Georgia for the upcoming elections in early January.
Michael Purves, founder and CEO of Tallbacken Capital, argues that the importance of those races could lead to Democrats controlling the White House, Senate and House, meaning January is the “new November” on election volatility risk, said in a note to customers.
- Virus resurgence
On Saturday, the United States reported a record increase of coronavirus infections for the fourth consecutive day with at least 131,420 new infections, bringing the country’s total number of viral infections to about 9.91 million, according to a Reuters inventory. According to Reuters, the national death toll was more than 1,000 for the fifth consecutive day on Saturday.
But despite the resurgence of viral cases, the prospects for a massive fiscal stimulus before January remain dim.
Democrats likely have an incentive to wait until after the Georgia sprint in January when they can regain control of the Senate. That will enable them through their own large spending package.
Senate Republicans, for their part, will be able to block large-scale spending by Democrats. On Friday, US Senate Majority Leader Mitch McConnell said that economic data, including a drop in unemployment, showed Congress should enact a smaller stimulus package.
- Wall Street celebrates Biden’s victory
Investors and Wall Street celebrities said Saturday they were happy that the election was finally called, ending a series of unsettled days in which Trump repeatedly claimed election fraud that does not provide evidence.
JPMorgan CEO Jamie Dimon said in a statement: “Now is the time for reunification. “We must respect the outcome of the presidential election of the United States and, as we have done with every election, respect the voter’s decision and support a peaceful process of transition of power. “
Billionaire investor Bill Ackman wrote on Twitter: “There will be times in battle when people should fold tents” and urged: “Give in peacefully and call for unity.”
“Biden is good news for the market,” said Christopher Stanton, chief investment officer at Sunrise Capital Partners. “We’re all tired of the blatant rhetoric accompanying Trump’s tweets.”
In earnings news, a few companies reporting in the coming days include McDonald’s (NYSE :), Softbank (T :), Beyond Meat (NASDAQ 🙂 and Tilray (NASDAQ 🙂 on Mondays and Walt. Disney (NYSE :), Applied Materials (NASDAQ 🙂 and Cisco (NASDAQ 🙂 on Thursday.
- Fed speaker, inflation data
The US economic calendar features an update on inflation and consumer confidence along with Thursday’s report.
Friday’s jobs report showed the US economy created the least 5 months of employment in October and more Americans are working part-time, the clearest sign of a recovery from recession. The pandemic-induced withdrawal is losing momentum as financial stimulus runs out and new cases of virus sprout. .
Some of the Fed speakers that will appear this week include Cleveland Fed Chairman Loretta Mester, Dallas Fed President Robert Kaplan, Chicago Fed Chairman Charles Evans, New York Fed President John Williams, Fed Vice President Randal Quarles and Fed Governor Lael Brainard.
Fed Chairman Jerome Powell will speak as part of the panel at the annual ECB forum on central banking on Thursday.
- Brexit ends
The UK and the European Union have a deadline until November 15 to once again try to reach a deal on a Brexit trade deal. The same deadline has come and gone before, but this deadline is crucial because the transition period – whereby Britain remains in the EU’s common market and tariff union – ends on December 31.
Both sides said that an agreement could be reached, but the EU’s chief negotiator warned of “a very serious difference.”
It underlines the uncertainty the UK economy is facing after the Bank of England announced larger than expected stimulus gains just last week to cushion the economy from the ravages of waves. closes new coronavirus and Brexit.
As negotiations begin into extra time, markets will also receive updates on the economy’s health from Thursday’s third-quarter data, along with the data above.