It’s a known fact that every 4 years the US general presidential elections rock the stock markets. Considering the country’s economic and military power, the US presidential election is seen as the most important recurring political event globally. Most traders don’t like uncertainty, however in times like these volatile markets can be very profitable to traders who know how to profit from fluctuating stock prices. The outcome of the election widely affects the general markets around the world, with implications on major issues such as globalisation, COVID-19, climate change and many others. Both candidates have high approval ratings from their respective parties, President Trump at 85% from Republicans and Biden at 74% from Democrats. Historically, the Republican party has been considered more favourable to business and world markets. Even though there has been a shift the past 10 years, seeing Wall Street money flowing into Democrat candidates.
A brief intro of the US elections
Is this election a big deal?
The US economy is the world’s largest economy, with a GDP accounting to 16% of the global GDP. In addition to growth and employment, voters and investors will be paying attention to various policy matters that will affect those indicators going forward. Some of the main policies are on government spending and taxes, government debt, regulatory policies, foreign trade, interest rates and the federal reserve.
Trading Tips during the US Elections
-Set Price Alerts and notifications for significant price movements before, after and during the US elections
-Place close attention to market fluctuations weeks leading up to the elections
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-Be ready to open a long or short position whenever an opportunity arises.
Latest News on US Elections
Who will Muslim Americans vote for in the US elections?on October 27, 2020 at 4:07 am
Muslims are a small minority in the United States, but they may have a significant influence on the US elections. Muslim Americans, however, are often ...
US elections: Reuters ties up with Mapcreator to offer customized map tools for userson October 27, 2020 at 12:00 am
Reuters is the exclusive distributor for US elections results from the National Election Pool and Edison Research, and plans to deliver comprehensive ...
The View from England: US elections are unnerving for global investorson October 26, 2020 at 9:11 pm
The U.S. presidential election comes every four years, being held on the Tuesday following the first Monday in November, that is 2nd to 8th. As such, it ...
Russian stock market may decline in anticipation of US electionson October 26, 2020 at 9:11 pm
/TASS/. The Russian stock market may decline by the end of the week due to the approaching US presidential elections. According to experts, the MOEX ...
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Overall the effect of the US elections on global economies will be very significant. Each presidential contender has his own policy preferences which widely influence the decisions that will be made during the next administration, and in turn, will influence the markets.
Investors should be prepared for a volatile and uncertain market, and also the possibility of a shorter or longer-term shift in the current market sentiment.