Company / Analytics

Analytics, 09 November 2020

What will drive the markets this week?

Stocks recorded their best weekly gains since April, as investors anticipated the outcome of the US presidential elections which ignited a stock market rally around the world.

Though uncertainty remains on moves by the Trump campaign, Democratic candidate Joe Biden has been declared president-elect and it appears the stock market is happy. US stock futures were up on Sunday, with the Dow futures rising 287 points or about 1%; S&P 500 up 1%; and Nasdaq futures up 1.3%. European and Asian markets also rose on Monday in reaction to the Biden win.

Analysts believe it’s what happens in the Senate race that could determine the next move up or down in the market, warming up to the prospect of a divided government with a Democratic president and Republican Senate. The Democrats have the House.

This week, investors will be watching Biden’s moves as he plans his administration, starting with a coronavirus task force which will be named Monday.

The third-quarter earnings season also continues, with several big names such as Canopy Growth, McDonald’s, Nikola, SoftBank Group, Lyft, Adidas, and Walt Disney, among others reporting.

In Europe, investors will be looking at the U.K. and EU preliminary GDP numbers to assess the relative strength of their respective economies as they work to try and negotiate a trade deal. Read more on this and other insights on what will drive the market this week.

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