United States stocks open higher in Election Day session

US election

Swings in USA stock futures on election night could be even wilder than they were during President Trump's surprise victory in 2016 due to a recent tweak by exchange operator CME Group Inc. So far, Trump and Biden have won the states they're expected to win and no battleground states have been decided.

Republican Donald Trump said, "Frankly, we did win this election".

Trump said he would take the election to the Supreme Court.

There had been growing fears on Wall Street that there may not be a clear victor in the election.

The rally is "predicated somewhat on the hope that we're about to get closure on the election", said Briefing.com analyst Patrick O'Hare.

Wall Street stocks rose early on Tuesday (Nov 3), extending gains from the prior session, as voters headed to the polls in the culmination of a long and bitter U.S. presidential campaign. Analysts and traders have said the market would be comfortable with a clear Trump victory.

"What we are seeing now is Trump doing better and people are just defaulting to "Trump is good for the market", so why not just buy now and cut to the chase".

The chance of a Trump victory saw the dollar jump 2 per cent on the Mexican peso on the assumption United States trade policies would continued to favour tariffs. In Paris, the CAC 40 in Paris rose 0.4% to 4,823. The FTSE 100 in London gained 2.2%.

In Asia, the Nikkei 225 in Tokyo jumped 2.1% to 23,783.29 on Wednesday, while the Kospi in Seoul added 0.8%, to 2,361.70. India's Sensex rose 0.9% and the S&P/ASX 200 in Sydney lost 0.1% to 6,062.10. The Hang Seng in Hong Kong was flat at 24,937, while the Shanghai Composite Index rose 3 points, or 0.1%, to 3,274.

S&P 500 futures are closely watched in overnight trading because they are considered one of the best gauges of investor sentiment after the USA stock market is closed.

The last two days of gains for Wall Street have helped the S&P 500 recover roughly half its 5.6% loss from last week, which was its worst since the market was plunging in March.

Analysts say Tuesday's rally reflected less of a bet on one candidate or the other, and more a hope that the USA can avoid a protracted fight and move past one of the key uncertainties in markets.

As voters turned up in huge numbers during U.S. elections 2020, the markets gave the election wave a thumbs-up with the Dow ending up 2.1 per cent in Election Day session. A contested election would inflict still more uncertainty on markets buffeted by bouts of volatility as the coronavirus pandemic has waxed and waned.

Stocks powered higher Tuesday after a bruising USA presidential campaign that sent markets spinning because of the uncertainty it sowed finally reached its end. History shows stocks tend to rise regardless of which party controls the White House.

More than anything, what investors hope for is a clear victor to emerge from the election, even if it takes a while for the votes to be tallied.

The makeup of the Senate is another unknown overhanging the markets, given the potential for legislative gridlock.

Investors and economists have been clamoring for a renewal of supplemental benefits for laid-off workers and other stimulus since the summer, but split control of Congress and Washingtons deep partisan divide have so far prevented a deal from happening.

Besides the U.S. election, investors are also looking ahead to a Federal Reserve meeting and a trove of economic data, especially the key October jobs report.

The moves in global markets follow a solid finish for stocks on Wall Street Tuesday.

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