Market WATCh Weekly 6 November 2020

Market WATCh Weekly 6 November 2020

November 6, 2020

Results point to a Joe Biden victory in the Presidential election, a Republican Senate and a Democratic House of Representatives. This diminishes chances for a large fiscal stimulus, particularly in the coming two months.
The public health crisis remains severe in the Northern Hemisphere. The UK government announced a new national lockdown last weekend and the Bank of England increased the size of its quantitative easing program on Thursday. At home, the RBA cut its interest rate targets to near zero and embarked on purchasing longer-term government bonds, including semis. Data released this week pointed to a stagnation in the labour market, a fall in consumer demand and an ongoing rebound in the housing market, helped by low interest rates and government incentives for construction.

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