Longer dated US yields tick up
Move from tech sector stocks continues with Nasdaq -1.37%
Trump administration remains defiant and continues to fight result
A sort of calm returned to markets after Mondays session. Dow was up just under 1% but S&P500 and Nasdaq closed in the red with tech under pressure once again. Investors are flipping from the Nasdaq to Dow Jones stocks as markets prepare for a vaccine to be rolled out with some speculation that the first round could be as early as December. The USD was mixed but overall trod water despite some volatility as the DXY closed at 92.75, mid-range on the day. GBP was the biggest mover as Brexit comments seem to signal progress in talks between the EU and UK but with Biden to take office in January there could be trouble brewing with regard to a US/UK trade deal as the former VP is no fan of Boris Johnson. Cable rallied to a high of 1.3279 keeping the recent momentum going. AUD pushed below the support at 0.7265 but couldn’t extend the losses past 0.7250 and closes out the day exactly where it opened mirrored with the other commodity currencies. Gold continued a slow bounce back to resistance at 1885/90 but drifted back off into the close. The Trump loyalists continue to claim the election isn’t over whilst President-elect Biden gave another address detailing how his administration plans to hit the ground running. Markets are largely ignoring the legal proceedings Trump has initiated seeing a flip in the outcome as unlikely. The Asian session will see the RBNZ rate decision as the highlight with no policy movement expected but a dovish stance to remain the overall message. US will be out for Veteran’s Day public holiday so expect a quiet one. Later ECB’s Lagarde will speak but not expecting her to say anything we don’t already know. Despite the potential vaccine central bankers still remain cautious on any recovery soon.