Analysis: Investors' bold bets on Biden win pose market risk

With less than two weeks to go before the U.S. presidential election, investors may be placing too much confidence in a decisive win by Democratic challenger Joe Biden as his lead in opinion polls narrows.

In betting markets, Trump's chances of winning the election increased about 1 percentage point to 36.3per cent following Thursday's debate, but Biden maintains a significant lead, with a 64.4per cent chance of winning the election, according to data from RealClearPolitics. The technology-heavy Invesco QQQ Trust Series 1 ETF and the S&P 500 tracking ETF SPDR S&P 500 ETF Trust are each primed for a move of about 3per cent to 4per cent, Murphy said.

S&P 500 options expiring in December are implying a more muted level of stock swings than they did just two weeks ago, suggesting expectations for market turmoil following the election have come in.

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

As US election odds narrow, market analysts factor in higher risksA higher risk of a split U.S. Congress and a contested election is being factored into some market analysts' models after some odds on the ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Ahead Of Time 2020 Latest News & Headlines - THE BUSINESS TIMESBT SPECIAL: The luxury watch industry has forged ahead with its plans amid the different challenges Covid-19 has thrown at it. All this is evident in the new timepieces which you'll discover in this year's watch supplement.
Source: BusinessTimes - 🏆 15. / 51 Read more »