How the outcome of the US elections could affect the global stock market

USA flag and contemporary glass skyscrapers in New York

The Covid-19 pandemic didn’t leave much space for other talking points in the markets this year, but with the outcome of the US election imminent, investor attention will inevitably shift towards how different outcomes could impact the performance of the US stock markets.

Historical data shows that stock market volatility tends to increase in the months before a US election, thanks to political uncertainties and the continuous re-assessment of poll results and market expectations.

As a rule of thumb, a Republican lead is supportive of stock prices as Republicans tend to favour policies which boost company earnings and shareholder profits. Alternatively, a…

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