Global stocks eased back on Friday as Democrat Joe Biden pulled ahead of President Donald Trump, with Wall Street's main indexes giving back some of the week's sharp gains as investors awaited the outcome of a nail-biting US election.
As Mr Biden took the lead in the battleground states of Pennsylvania and Georgia, putting him on the verge of winning the White House race, investors in Europe and on Wall Street grew increasingly jittery. Republicans could retain control of the US Senate pending the outcome of four undecided Senate races and they would likely block large parts of Mr Biden's legislative agenda, such as expanding healthcare and fighting climate change.
Stock markets soared midweek and, having moved so far so fast, have shown little desire to push higher into the weekend.
“The ongoing risk-on phase that has been driving stocks sharply higher appears to be borne of the fact that even if Biden does take the White House, his progressive wings could be clipped by the likely inability to take both Senate and House,” said Joshua Mahony, senior market analyst at online trader IG.
The US election week has seen heightened volatility after investors bet on a Mr Biden win, paving the way for a bigger fiscal stimulus package than would have been dished out under the re-election of Mr Trump. Meanwhile, a Republican-controlled Senate will make it unlikely that Mr Trump’s corporate tax cuts will be rolled back.
Non-farm payrolls came in ahead of expectations, with US employers adding 638,000 jobs in October, as the labour market continued its slow rebound eight months from the start of the pandemic-fuelled downturn.
While the figures were still down on last month, the drop below 7 per cent for the unemployment rate provides further evidence that the US economy is recovering.
"Stock markets soared midweek and, having moved so far so fast, have shown little desire to push higher into the weekend. But with the US election and job numbers out of the way, the road ahead looks much less bumpy, giving space for a further rally," said Chris Beauchamp, chief market analyst at IG.
"Hopes of a US fiscal stimulus will continue to play a part but given the likelihood of a standoff between the new president and a Republican Senate, investors should not get their hopes up. The lack of a 'blue wave' means a smaller bill is likely, but this could turn out to be risk-positive given that it will mean the Fed cannot afford to relax its own stimulus efforts."
The S&P 500 edged lower on Friday after posting the biggest four-day increase since April, while the tech-heavy Nasdaq 100 dropped even more after outperforming the benchmark index all week. Treasury 10-year note yields climbed back above 0.80 per cent and the dollar strengthened from a more than two-year low.
“US futures are stalling today, and we are seeing traders shaving some profit of their trades today,” said Naeem Aslam, chief market analyst at Avatrade.
“After posting the worst week since March last week, the US stock market is on track to post the best week since April this year. Traders have taken the current sell-off as an opportunity and went after the big names which were selling at a heavy discount.”
Despite Friday's losses, the benchmark S&P 500 and the Nasdaq were on track for their best week since April as the prospect of a policy gridlock in Washington eased worries about tighter regulations on US companies.
Mr Aslam said the current momentum for tech stocks contrasts with a lacklustre performance in other sectors.
“The tourism and hospitality sectors are especially underwater, and investors are eagerly waiting for potential vaccine news, which is imminent," he said.
"It is highly likely that we will get the news any day, and the moment that news will hit terminals, we could see airline, hotels, and other hospitality-related stocks surging through the roof."
While the world waits for more clarity from the election result, US investment bank Goldman Sachs pinpointed two key dimensions from a win for Mr Biden that could affect emerging market assets: a change in trade policy and a different approach towards fiscal policy.
“A Biden presidency, however narrow, would likely make less use of tariffs and quotas, and would likely prefer a more multilateral approach to global trade. That would continue to benefit the CNY and China-linked assets that have been the most direct target of US trade protectionism,” the bank said.
“Second, fiscal policy – which requires all parts of government to work together – is likely to be slower and less expansionary than under a united government. This is a negative cyclical impulse for the US and the rest of the world relative to the counterfactual of a united government.”
More from Neighbourhood Watch:
RESULTS - ELITE MEN
1. Henri Schoeman (RSA) 57:03
2. Mario Mola (ESP) 57:09
3. Vincent Luis (FRA) 57:25
4. Leo Bergere (FRA)57:34
5. Jacob Birtwhistle (AUS) 57:40
6. Joao Silva (POR) 57:45
7. Jonathan Brownlee (GBR) 57:56
8. Adrien Briffod (SUI) 57:57
9. Gustav Iden (NOR) 57:58
10. Richard Murray (RSA) 57:59
What is a black hole?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
The%20specs
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Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
MO
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The biog
From: Upper Egypt
Age: 78
Family: a daughter in Egypt; a son in Dubai and his wife, Nabila
Favourite Abu Dhabi activity: walking near to Emirates Palace
Favourite building in Abu Dhabi: Emirates Palace
The biog
Age: 59
From: Giza Governorate, Egypt
Family: A daughter, two sons and wife
Favourite tree: Ghaf
Runner up favourite tree: Frankincense
Favourite place on Sir Bani Yas Island: “I love all of Sir Bani Yas. Every spot of Sir Bani Yas, I love it.”
MATCH INFO:
Second Test
Pakistan v Australia, Tuesday-Saturday, 10am daily at Zayed Cricket Stadium, Abu Dhabi
Entrance is free
Mica
Director: Ismael Ferroukhi
Stars: Zakaria Inan, Sabrina Ouazani
3 stars
'Operation Mincemeat'
Director: John Madden
Cast: Colin Firth, Matthew Macfayden, Kelly Macdonald and Penelope Wilton
Rating: 4/5
MATCH INFO
Azerbaijan 0
Wales 2 (Moore 10', Wilson 34')
Children who witnessed blood bath want to help others
Aged just 11, Khulood Al Najjar’s daughter, Nora, bravely attempted to fight off Philip Spence. Her finger was injured when she put her hand in between the claw hammer and her mother’s head.
As a vital witness, she was forced to relive the ordeal by police who needed to identify the attacker and ensure he was found guilty.
Now aged 16, Nora has decided she wants to dedicate her career to helping other victims of crime.
“It was very horrible for her. She saw her mum, dying, just next to her eyes. But now she just wants to go forward,” said Khulood, speaking about how her eldest daughter was dealing with the trauma of the incident five years ago. “She is saying, 'mama, I want to be a lawyer, I want to help people achieve justice'.”
Khulood’s youngest daughter, Fatima, was seven at the time of the attack and attempted to help paramedics responding to the incident.
“Now she wants to be a maxillofacial doctor,” Khulood said. “She said to me ‘it is because a maxillofacial doctor returned your face, mama’. Now she wants to help people see themselves in the mirror again.”
Khulood’s son, Saeed, was nine in 2014 and slept through the attack. While he did not witness the trauma, this made it more difficult for him to understand what had happened. He has ambitions to become an engineer.
Tickets
Tickets start at Dh100 for adults, while children can enter free on the opening day. For more information, visit www.mubadalawtc.com.
Brave CF 27 fight card
Welterweight:
Abdoul Abdouraguimov (champion, FRA) v Jarrah Al Selawe (JOR)
Lightweight:
Anas Siraj Mounir (TUN) v Alex Martinez (CAN)
Welterweight:
Mzwandile Hlongwa (RSA) v Khamzat Chimaev (SWE)
Middleweight:
Tarek Suleiman (SYR) v Rustam Chsiev (RUS)
Mohammad Fakhreddine (LEB) v Christofer Silva (BRA)
Super lightweight:
Alex Nacfur (BRA) v Dwight Brooks (USA)
Bantamweight:
Jalal Al Daaja (JOR) v Tariq Ismail (CAN)
Chris Corton (PHI) v Zia Mashwani (PAK)
Featherweight:
Sulaiman (KUW) v Abdullatip (RUS)
Super lightweight:
Flavio Serafin (BRA) v Mohammad Al Katib (JOR)
ENGLAND SQUAD
Team: 15 Mike Brown, 14 Anthony Watson, 13 Ben Te'o, 12 Owen Farrell, 11 Jonny May, 10 George Ford, 9 Ben Youngs, 1 Mako Vunipola, 2 Dylan Hartley, 3 Dan Cole, 4 Joe Launchbury, 5 Maro Itoje, 6 Courtney Lawes, 7 Chris Robshaw, 8 Sam Simmonds
Replacements 16 Jamie George, 17 Alec Hepburn, 18 Harry Williams, 19 George Kruis, 20 Sam Underhill, 21 Danny Care, 22 Jonathan Joseph, 23 Jack Nowell
The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
Yuki Means Happiness
Alison Jean Lester
John Murray
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
RESULTS
5pm: Wathba Stallions Cup Maiden (PA) Dh 70,000 (Dirt) 1,600m
Winner: Samau Xmnsor, Abdul Aziz Al Balushi (jockey), Ibrahim Al Hadhrami (trainer)
5.30pm: Maiden (PA) Dh 70,000 (D) 1,600m
Winner: Ottoman, Szczepan Mazur, Abdallah Al Hammadi
6pm: Maiden (PA) Dh 70,000 (D) 1,800m
Winner: Sharkh, Patrick Cosgrave, Helal Al Alawi
6.30pm: Handicap (PA) Dh 85,000 (D) 1,800m
Winner: Yaraa, Fernando Jara, Majed Al Jahouri
7pm: Handicap (PA) Dh 70,000 (D) 2,000m
Winner: Maaly Al Reef, Bernardo Pinheiro, Abdallah Al Hammadi
7.30pm: Maiden (PA) Dh 70,000 (D) 1,000m
Winner: Jinjal, Fabrice Veron, Ahmed Al Shemaili
8pm: Handicap (PA) Dh 70,000 (D) 1,000m
Winner: Al Sail, Tadhg O’Shea, Ernst Oertel
The%20Specs%20
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RACE CARD
6.30pm: Baniyas Group 2 (PA) Dh 97,500 (Dirt) 1,400m.
7.05pm Maiden (TB) Dh 82,500 (D) 1,200m
7.40pm Maiden (TB) Dh 82,500 (D) 1,400m
8.15pm Handicap (TB) Dh 82,500 (D) 1,400m
8.50pm Rated Conditions (TB) Dh 120,000 (D) 1,600m
9.25pm Handicap (TB) Dh 95,000 (D) 1,200m
10pm Handicap (TB) Dh 85,000 (D) 2,000m
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
