Stock exchanges gain despite uncertainty in the USA. The US presidential election has not yet been decided. Investors, however, leave the race for the most powerful office in the world rather cold: important indices in Europe and the USA are slightly increasing in value.
Stock exchanges gain despite uncertainty in the USA
The stock exchanges in Europe and the US posted gains despite the open race for the US presidency. After initial losses, the Dax closed two percent up. In Paris, the CAC 40 gained almost two and a half percent, the London FTSE-100 rose 1.7 percent.
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In the USA, the Dow Jones was quoted on the New York Stock Exchange around noon, a good two percent up. The Nasdaq technology index recorded even stronger gains, rising by around four percent.
Canaccord Genuity analyst Tony Dwyer commented that the markets had already set their sights on the time after the current uncertainty. Investors primarily focused their attention on macroeconomic factors such as inflation and growth figures.
The volatility index fell significantly
In addition, it became apparent that there will continue to be a Republican majority in the Senate in Washington. Investors therefore estimated the likelihood of tax increases, as advocated by some Democrats, to be low.
At the same time, investors seem to be less concerned about a constitutional crisis. The highly regarded volatility index of the Chicago options exchange CBOE, which is regarded as a gauge for the fear of investors of strong price fluctuations, fell significantly.
In the USA it is still uncertain who will win the election. The outcome in several key states and thus the overall result are still unclear. US Democrat Joe Biden currently seems to have a slightly better chance of winning.