As feared, the US election hangs in the balance with neither Trump nor Biden yet to emerge victorious.
While equity markets have so far taken the non-result in their stride, volatility could rise if the lack of clarity drags on for an extended period.
Indeed, it’s already been a tumultuous time for the US in the past month. Just as a strong rebound in activity was confirmed by the September quarter GDP report (a 33 per cent annualised gain), new cases of COVID-19 surged once again to fresh highs across the nation.
Then came this week’s election, making recent events pale in comparison.
The final sprint to the White House is clearly difficult to predict, with Joe Biden edging ahead at the time of publishing. But President Trump has flagged he will challenge the result. Also, the makeup of Congress remains important, particularly with regards to the size and timing of fiscal stimulus.
US political certainty may still be a way off.
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