Pavan Sharma

The market surge since the US election is the best US election week since Roosevelt beat Hoover in 1932. The US dollar also continues to weaken and is at 2-year lows against a broad basket of currencies.

The LYC Chart shows that primary support has now shifted up to $2.30 from $2.10 since our last update. The key support at $2.55 is crucial and could hold in case of any negative movement.

Global markets continued to rally overnight (S&P 500 Index +2%) as investors rushed back into technology firms on bets that the US election results will mean no major tax hikes or regulatory changes that would derail those sectors.

Markets surged overnight with the bullish thesis based around the view that a narrow US election victory, coupled with split legislation makes it unlikely for Biden tax hikes to be passed & technology antitrust reform becomes tougher to legislate.

The big news yesterday locally came from the Reserve Bank of Australia which cut the cash rate to a record low 0.1% from 0.25%.

Tomorrow’s US election remains the focus. Most polls give Biden a decisive lead in the popular vote, much more than Clinton had in the run-up to the 2016 election and, crucially, Biden is mostly ahead in the key swing states. Investors are bracing for the

The backdrop of a second wave of COVID-19 and fresh lockdowns in Europe and now the UK, mixed earnings from big technology companies and this week’s Presidential election has investors on the side-lines.