Stocks rally, dollar slides as US vote outcome still unclear

November 05, 2020: Stock markets rallied Thursday and the dollar slid against the euro and pound as US election uncertainty reigned ahead of a key Federal Reserve update.

The knife-edge US presidential race has tilted toward Joe Biden, with Democrat wins in Michigan and Wisconsin bringing him close to a majority.

But President Donald Trump claimed that he was being cheated -- and unprecedented complaint unsupported by any evidence -- and has gone to court to try and stop vote counting.

"Likely Republican control of the Senate should put paid to increased corporate regulation and taxation while a new administration in the White House may well dial down tensions with other global superpowers on issues like trade," noted AJ Bell investment director Russ Mould.

"This certainly seemed to be the thinking in Asia overnight as Japanese and Chinese equities staged substantial rallies."

Europe picked up the baton by extending strong gains won Wednesday and Wall Street also built upon the previous days gains at the opening bell.

Hopes for a new economic rescue package out of Washington provided support to equities, even though any spending bill will not be as big as previously thought under a Democrat-run Congress.

Dealers were also keeping tabs on coronavirus developments with England going into lockdown for a second time, joining France and other key European economies, though observers said they had largely been priced into markets now.

AFP/APP