US stock futures sold off sharply early Wednesday as the prospects of a quick, decisive result to the presidential election faded, leaving investors on edge about the outcome. Every real estate contract which gets signed is an emotional and financial investment in the future. A new home, a new family, a new marriage, a new life, a new start. Markets have been wagering that the 2020 Election would result in a so-called “blue wave,“ but that scenario seems far from likely, as the race has shaped up… Hong Kong stock market debut of online finance giant Ant Group postponed; move follows similar postponement in Shanghai.
New York / London (CNN Business)US stock futures sold off sharply early Wednesday as the prospects of a quick, decisive result to the presidential election faded, leaving investors on edge about the outcome.
Dow (INDU) futures dropped 1.5%, or more than 400 points, at 3 a.m. ET after swinging between gains and losses late Tuesday. S&P 500 (SPX) futures were down 1%. Nasdaq (COMP) futures, which had surged as much as 3% earlier, were up just 0.5%
Uncertainty is the enemy of markets. Investors had hoped that early results would point to a clear winner sooner rather than later, avoiding the nightmare scenario of a contested election.
Several key races remained too early, however, including Arizona, Pennsylvania, Wisconsin and Michigan. In some places, it could take days to count all the votes.
Speaking at the White House early Wednesday, President Donald Trump attacked legitimate vote-counting efforts, suggesting attempts to tally all ballots amounted to disenfranchising his supporters. He also said he had been preparing to declare victory earlier in the evening, and baselessly claimed a fraud was being committed.
“This is a fraud on the American public. This is an embarrassment to our country,” Trump claimed, adding he would go to the US Supreme Court.
“When there’s been a heightened chance of a contested election, that’s when volatility has picked up,” Charles Schwab chief investment strategist Liz Ann Sonders told CNN Business.
Investors had bet that former Vice President Joe Biden would emerge victorious. But riskier assets like stocks are expected to rally regardless once the uncertainty lifts and it becomes clear how power will be divided in Washington.
David Joy, chief market strategist at Ameriprise, said the Nasdaq gains could reflect the view that many big tech firms and other stocks that benefit from rapid growth would do better under Trump than stocks that get a boost from a general strengthening of the economy.
Still, strategists are cautioning against drawing early conclusions.
“The night is young,” Sonders said.
In Asia, stock markets were generally higher, although Chinese indexes remained muted after the shock suspension of Ant Group’s giant IPO Tuesday left investors dazed. Japan’s Nikkei 225 (N225) finished up 1.7%, while South Korea’s Kospi (KOSPI) rose a more moderate 0.6%. The Shanghai Composite (COMP) rose 0.2% and Hong Kong’s Hang Seng Index (HSI) shed 0.2%.
European markets opened lower, with France’s CAC 40 (CAC40) and Germany’s Dax (DAX) both down more than 1%.
The US dollar ticked up 0.5% against a basket of top currencies, while demand for benchmark 10-year US Treasuries rose, sending yields lower.
US stocks posted strong gains during regular trading hours on Election Day. Hopes that a Biden win would unleash more government spending to help the economic recovery have boosted stocks this week.
The Dow closed up 555 points, or 2.1%, higher, its best percentage gain since mid-July. The S&P 500 closed 1.8% higher, its best day in a month. The Nasdaq Composite finished 1.9% higher — its best performance since mid-October.
Investors are also closely watching the results in the race for control of the US Senate. If Democrats appear to win the majority of seats, that could pave the way to bigger fiscal stimulus and infrastructure spending — two things markets crave. However, it could also lead to higher taxes that would cut into corporate profits.
Looking ahead, the Federal Reserve meets Wednesday, though the central bank will not make any announcements about policy until Thursday.
— CNN’s Matt Egan and Anneken Tappe contributed to this report.
Author: Clare Duffy, Julia Horowitz and Jazmin Goodwin, CNN Business
Investment In The Future: Real Estate Contracts Are Being Signed In New York City
Every real estate contract which gets signed is an emotional and financial investment in the future. … [+] A new home, a new family, a new marriage, a new life, a new start.
They’re back! According to a recent Bloomberg News article, analysis of cell phone records indicates that more people moved TO New York since March than moved AWAY from New York. At the same time, articles have begun to appear about people who left the city who now are saying it was a terrible mistake. After all, as those who have remained know, New York is still New York, no matter what. For now, city dwellers can still dine outside. They can visit art galleries and museums. And they can buy real estate.
According to the latest Reuveni Report, 202 sales contracts were signed last week, the largest weekly number since the pandemic shutdown. Those contracts represented asking prices totaling $421 million (sales prices are not recorded until after a deal has closed), an increase of 18% over the same week one year ago. Co-op sales represent the majority of all new contracts, with 125 units, followed by condos with 71, and townhouses at 6. While deals for units asking under $2 million still represented 75% of all new transactions by volume, and deals for units asking under $3 million represented 89%, the mere fact that 25% of all purchases were made for properties asking above $2 million represents a significant change from preceding weeks. Bigger deals have never been the majority of sales in New York, although they dominate the news and represent disproportionately large dollar amounts. Most buyers and sellers in New York transact with little fanfare at much lower levels. But, as this data demonstrates, they are transacting, and in significant numbers.
Real estate continues to boom all over the country. It’s an enormously hopeful sign. It demonstrates that, regardless of how the election turns out, everyone knows that life will go on. Americans are resourceful and fundamentally optimistic, even in times of such profound division. The majority of us are not so far to one side or the other that we cannot embrace the belief that we will unite around common beliefs as time goes by.
The Presidential election, contentious and polarizing though it may be, offers some consolations. More young people are voting than ever before. More voters of color feel enfranchised enough to believe that their votes count. More individuals than ever voted early, sometimes waiting in line for hours to ensure that their voices would be heard.
The Presidential elections of 1800 saw scurrilous attacks against both Adams and Jefferson. Although the two made up, by letter, many years later (and not long before dying on the same day, July 4 of 1826!), the campaign brought out the worst in their supporters. Although we are a vastly larger and more complicated nation today, living in a vastly more globalized and populous world, we will also emerge on the other side with a future that is in our hands to build.
Every real estate contract which gets signed is an emotional and financial investment in the future. A new home, a new family, a new marriage, a new life, a new start. Life continues, overcoming impediments; that’s the beauty of human nature. In the inspiring words of Dr. Martin Luther King, “The arc of history bends toward justice.”
Author: Frederick Peters
Stock-market hope for a ‘blue wave’ Election Day outcome washes out
Markets have been wagering that the 2020 election would result in a so-called “blue wave,“ but that scenario seems far from likely, as the race has shaped up to be a nail biter of a contest between former Vice President Joe Biden and incumbent President Donald Trump.
A blue wave, referring to a sweeping victory by Democrats that sees them gaining control of both chambers of Congress, as well as the presidency, was suggested by polls on the lead-up to the Nov. 3 election.
Many market strategists have viewed a so-called blue wave as a bullish political setup for financial markets, on the theory that it creates a stronger footing for Democrats to garner a fresh round of fiscal relief that could help the coronavirus-rocked economy recover from the worst pandemic in more than century.
Goldman Sachs’ Lotfi Karoui wrote in note last month that expectations for a rollback of Trump’s 2017 Tax Cuts and Jobs Act, under a blue wave scenario, would be somewhat mitigated by “expansionary fiscal policy“ and “the subsequent material boost to growth over the coming years would more than offset the negative impact from higher taxes.”
Read: Here are the Senate races to watch, as Democrats battle to take control from Republicans
At last check, however, the presidential race wasn’t yielding a clear-cut victory for Biden, as early polling had suggested and Democrats haven’t yet gained substantial ground in Senate races to achieve a majority in that chamber for Congress, so far.
As of early Wednesday, Democrats had 43 seats in the Senate and Republicans had 46, with 51 representing a majority.
Meanwhile, Biden was at 223 electoral college votes, while Trump was at 174, with major states, including Nevada and Pennsylvania, not yet declared, according to the Associated Press.
“The final outcome of the U.S. presidential election and control of the Senate remain in the balance, but the widely-anticipated ‘Blue Wave’ appears to have floundered, with betting markets now making Donald Trump the favorite to win a second term,“ wrote Paul Ashworth, chief U.S. economist at Oxford Economics in a Wednesday note.
Stock-index futures were turbulent but appeared to be trying to extend Tuesday’s gains, despite the blue wave turning into more of a mist.
Ashworth speculated that the buoyancy of the market, amid the unexpected tightness in the presidential race and Congressional contests, may be tied to the expectation that a fresh round of stimulus might also result from a Trump second term, should the 45th president prevail against Biden.
Trading in stock-index futures tend to be thinly traded and volatile.
“The race remains tight with ballots still to be counted in the coming days, legal challenges and recounts to be expected at a time when the market had positioned for a Blue Democratic Wave,“ wrote Sebastien Galy, Nordea Asset Management’s senior macro strategist, in a Wednesday research note.
“The best-case scenario for Biden is that he squeaks out a narrow win in some of those Midwest states, getting him to the crucial 270 electoral college votes,” Ashworth wrote. “But even in that scenario, the Republicans would probably end up holding the Senate — or the Democrats would, at best, hold a one-seat majority,” he said.
Author: Mark DeCambre
Hong Kong stock market debut of online finance giant Ant Group postponed; move follows similar postp
HONG KONG (AP) – Hong Kong stock market debut of online finance giant Ant Group postponed; move follows similar postponement in Shanghai.
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