News

Global markets were mixed overnight (S&P 500 Index -0.1%) as the “rotation” by investors into value stocks continued and small-cap US stocks outperformed.

Closer to home, the New Zealand dollar leapt to a 20-month high (the NZD touched 69 cents versus the USD) as the market reversed its bet the Reserve Bank will cut the official cash rate into negative territory. 

Global markets surged overnight (S&P 500 Index +2.3%) after Pfizer revealed its COVID-19 vaccine has been 90% effective against the dominant virus strains circulating currently.

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.

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.

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 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%.

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 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.