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Daily Archives: 8th November 2020

8th November 2020

🗞️ Whoever said markets hated uncertainty!

iTraxx Main

52.5bp, -1.1bp

iTraxx X-Over

313.5bp, -6.8bp

🇩🇪 10 Yr Bund

-0.61%, +2bp

iBoxx Corp IG

B+119.3bp, -2bp

iBoxx Corp HY

B+445bp, -5bp

🇺🇸 10 Yr US T-Bond

0.82%, +4bp

🇬🇧 FTSE 100

5,910, +3.8

🇩🇪 DAX

12,480, -88

🇺🇸 S&P 500

3,509, -1

Hamstrung administration boosts markets…

A day or two either side of the US election, the political uncertainty had resulted in a huge risk asset rally. Few would have thought it, but a potentially contested election result and the lack of a clean sweep for the Democrats had offered investors a bullish narrative.

There was obviously bit of a relief trade in there as well. Markets are now faced with some sort of an administration (lame-duck) likely limited in what it can achieve but, with it, a whole host of (policy) transformational risks have suddenly disappeared. When needs must, investors can twist the narrative for the cause.

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