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Daily Archives: 7th October 2020

7th October 2020

🗞️ Wising up to US political risk

MARKET CLOSE:
iTraxx Main

53.5bp, -0.6bp

iTraxx X-Over

318.1bp, -2.4bp

🇩🇪 10 Yr Bund

-0.49%, +2bp

iBoxx Corp IG

B+122.9bp, -0.8bp

iBoxx Corp HY

B+457.5bp, -2.5bp

🇺🇸 10 Yr US T-Bond

0.77%, +3bp

🇬🇧 FTSE 100

5860.28, (+1.29%)
🇩🇪 DAX

12645.75, (+0.82%)
🇺🇸 S&P 500

3465.39, (+0.34%)

If that were ever possible…

For once, markets didn’t fall out of bed, in Europe anyway. Trump has cried wolf so often that it might just be that investors have developed a thick skin, and are perhaps looking through his persistent berating. The US equity markets reacted poorly overnight but we didn’t follow in Europe. There was relative calm.

We would think that some sort of US fiscal stimulus is being priced in. That will come courtesy of either a smaller Trump injection, or the promise of a rocket-fuelled Biden one – should he be victorious in under a month’s time. Either way, once we get through the current noise, markets are going to rise.

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