FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1733
BTC/USD
42 294.79
GBP/USD
1.3640
USD/JPY
109.4985
USD/CHF
0.9224
USD/CAD
1.2799
EUR/JPY
128.4704

Supreme Court battle presents another major risk for investors


21 September 2020

Asian stocks and US equity futures are mixed, as global investors have been dealt with a major twist just six weeks before the US Presidential elections.

Supreme Court Justice Ruth Bader Ginsburg passed away on Friday, which means her seat has now been vacated in the highest federal court in the land. US President Donald Trump and his fellow Republicans are now rushing to fill that seat, as this appointment would be monumental in shaping the Supreme Court’s ideological framework for many years to come, potentially even beyond the tenure of the next President of the United States. And a more conservative-leaning jurist would be most appealing for President Trump’s voter base, something which Democratic nominee Joe Biden would want to prevent.

In other words, the November 3rd elections is set to become not just be about who occupies the White House, but also the Supreme Court.

Since the pandemic broke out, market participants have been hoping for more stimulus packages from policymakers, and Washington DC has been locked in battle between Republicans and Democrats over the next round of US fiscal support.

However, this fight for the Supreme Court vacancy could dominate the political agenda in the lead up to the elections, perhaps at the expense of the next round of fiscal stimulus. This might deflate some of the optimism that’s still baked into US equities about more incoming financial support for the world’s largest economy to boost the performance of stock markets. Instead, it adds another major element of uncertainty over the next 44 days.

With the Dow Jones index now testing its 50-day moving average, a break below this support level could make the benchmark index susceptible to further declines until it can find a steadier footing. At the time of writing, the FXTM Trader's Sentiment on the Wall Street 30 (Mini) remains short.

This turn of events means that fundamentally-driven investors who have been paying attention solely on the US economy and policymakers’ response to the pandemic may have to focus a lot more on the political narrative over the coming weeks. Although voting for the next President of the United States is already underway in several states, whoever can best galvanize their supporters over the Supreme Court battle could have the upper hand in the Presidential race. And as we know, the eventual winner of the November 3rd polls, and his policies, would certainly have a major bearing over the performance of global markets over the ensuing four years.

Already, since the passing of Justice Ginsburg, Democratic candidates received over US$103 million in donations on Sunday alone. It now remains to be seen how investors’ funds will flow when US stock markets open for trading this week.

#source

Related

Stock Futures Trade Sharply Lower
Stock Futures Trade Sharply Lower

Futures in the United States and in Europe are trading sharply lower as investors worry about the domino effect of Evergrande’s massive plunge on the Chinese property market..

21 Sep 2021

Oil market: the unbalanced demand and supply
Oil market: the unbalanced demand and supply

Oil prices climbed to higher grounds in the most recent daily sessions adding further to its upward momentum formed so far in September. The Oil market is running...

21 Sep 2021

US Markets lost major support, Asian Indices are melting
US Markets lost major support, Asian Indices are melting

Global markets closed last week on the back foot, and no significant positive factors emerged in Asian trading, increasing the flight to safety. The Hang Seng lost...

20 Sep 2021

US Retail sales and other data has supported Dollar
US Retail sales and other data has supported Dollar

The US Retail sales notably exceeded expectations, adding 0.7% in August vs an expected 0.7% decline. The increase to August last year is an impressive 14.9%...

17 Sep 2021

Geopolitics Fire Up Up and Cryptos Are Booming
Geopolitics Fire Up Up and Cryptos Are Booming

Futures in the United States and Europe are trading lower today as investors are worried about the new security agreement between the U.S., the U.K. and Australia...

16 Sep 2021

UK inflation surges, stocks struggle
UK inflation surges, stocks struggle

European markets flat at the open this morning as UK inflation surged to a record high in August and Chinese economic data was soft. China’s retail sales fell to...

15 Sep 2021


Editors' Picks

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.