What’s going on: The key races that could determine who is going to the White House are still too close to call, including Arizona, Georgia, Pennsylvania, Wisconsin and Michigan. In some places, it can take days to count all the votes.
Split: Wall Street bets that former Vice President Joe Biden will win over the White House and Democrats will take control of the Senate, paving the way for a generous financial bailout in a tough winter.
Credit Suisse told clients earlier on Wednesday that races for both the presidency and control of the Senate were “much tighter than expected.” It warns that the country may not have a sure answer as to whether President Donald Trump or Biden will win until Friday.
“We expect volatility to remain high,” the bank said. “Amidst the lack of clarity, patience is required.”
The biggest concern on Wall Street is that a controversial election will take days or weeks to settle. That risk has not disappeared yet.
Such unfounded statements only darken market sentiment, according to international economist James Knightley, ING’s head of international economics team.
“With Donald Trump clearly now pushing the case that this will not be fair, this will be challenged – that will leave the market worried this could be [take] weeks, “Knightley told me.
But a lengthy, divisive election makes passing such a package unlikely in the coming weeks and could cause risky assets like stocks to regain some recent returns.
“When you have hatred and argument going on, it doesn’t exactly give you confidence [that] You’re going to get politicians sitting around the table to come up with a quick deal, “Knightley said.
If Congress can’t come to a deal, pressure will rise on the Federal Reserve to do more. The central bank, which meets on Wednesdays and Thursdays, has assured the public that they still have the ability to act after pushing interest rates close to zero and earning trillions of dollars in bonds this year.
The Fed has made it clear it doesn’t want to be the only game in town. Depending on how the election takes place, it may not have a choice.
China halted Ant Group’s historic IPO
Details: The Shanghai Stock Exchange said in a statement on Tuesday that it postponed the listing of the company, less than two days before its shares began trading, because ” Major issues “could cause it” to fail to meet listing conditions or disclosure requirements. “
According to a statement from Ant Group, the IPO was also suspended in Hong Kong, which mentioned the meeting between Ma and Chinese officials as well as “recent changes” in the regulations. In a statement on its official WeChat account, Ant Group apologized to investors for “any inconvenience caused by this development.”
The Chinese fintech giant’s double-listing is set to raise $ 37 billion, even bigger than Saudi Aramco’s 2019 IPO.
“There is a saying in China:” The highest nail will be, “says Duncan Clark, author of the book” Alibaba: The House Jack Ma Builds “and the founder of Chinese investment consulting firm BDA. is shut down “.
The unprecedented intervention is seen as a cautionary tale for Chinese businessmen with lofty ambitions – even for Communist Party members like Ma. And even if Ant does meet new regulatory requirements, its huge business will only move forward under the scrutiny of Chinese regulators, which could limit growth.
Also Today: The Non-Manufacturing ISM Index, a key US service sector index, posted at 10 a.m. ET. But for the markets, the US election results will be the big driver.
Coming tomorrow: The Federal Reserve makes the latest policy announcement ahead of the US jobs report for October.