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November 03, 2020
Five Things - Europe
Bloomberg

Good morning. It's U.S. election day, stocks are higher and there was a shooting in Vienna. Here's what's moving markets.

Election Day

The big day has arrived after President Donald Trump's and Democratic nominee Joe Biden's campaigns both claimed the inside track to victory on the eve of the U.S. election. Biden's campaign manager argued that the former vice president's success banking early votes and his steady polling lead mean any path for Trump would rely on eking out victories in three states where vote counting is expected to take days or longer -- despite the president's repeated statements that he thinks a winner should be declared Tuesday night. Here's an hour-by-hour guide to election night, and here are some photos from the final stretch of the race.

Stocks Up

European and U.S. equity futures rose with Asian stocks on Tuesday ahead of the election. Individual investors are bracing for yet more volatility, while JPMorgan Chase & Co. strategists are dropping their longtime preference for technology stocks no matter who wins the vote. Once the contest passes, investors will contend with the Federal Reserve delivering a policy decision Thursday before the October jobs report Friday. Away from stocks, oil held gains after jumping the most in three weeks on Monday on increasing signs OPEC+ will delay a planned easing of output cuts.

Vienna Shooting

Gunmen opened fire on people enjoying a last night out at Vienna's cafes and restaurants before a coronavirus lockdown Monday in what authorities said was a terrorist attack that left at least two dead — including one of the assailants — and 15 wounded. Police said that several shots were fired on a lively street in the city centre and that there were six shooting locations. The motive was under investigation, but Austria's Chancellor Sebastian Kurz said the possibility it was an anti-Semitic attack cannot be ruled out, given that the shooting began outside Vienna's main synagogue.

G4S Rejects Bid

British security firm G4S recently turned down a takeover proposal from U.S. competitor Allied Universal Security Services, according to people with knowledge of the matter. G4S, which has a market value of 3.2 billion pounds ($4.1 billion), last week rejected the proposal as too low and didn't engage, the people said. The move marks the second suitor to be turned away by the British firm, which is publicly fighting a hostile bid from Canada's GardaWorld. 

Coming Up…

Impending tighter Covid-19 restrictions around Europe are eyed again, while pound traders are still monitoring talks between the U.K. and European Union, which are now largely focused on fishing. Euro-area finance ministers will meet virtually to discuss the impact of the pandemic. U.S. durable goods data are also due. Chemicals conglomerate Bayer and Primark retail store owner Associated British Foods are among companies reporting earnings.

What We've Been Reading

This is what caught our eye over the past 24 hours. 

And finally, here's what Adam Haigh is interested in this morning

Just get it out of the way. Get it done. In many ways for investors and markets, that is the prevailing sense heading into today's historic U.S. election. A result one way or the other, for Joe Biden or Donald Trump, will bring closure to this recent period of uncertainty and allow businesses to plan for the future. Indeed, as veteran currency strategist David Bloom said when he spoke to Bloomberg TV on Monday, with the vote out of way the equity market can charge higher and the dollar can revert to its downward trend that's been intact for much of this year until late. In his view now could be a great opportunity to buy in, "as long as we get a clear conclusion," from the vote. "I want somebody to win the election and the other side to say it's done and then it's over," Bloom said. "That is what matters to the dollar. It doesn't matter whether it's Biden, it doesn't matter whether it's Trump."

Adam Haigh is an editor for Bloomberg News covering global markets from Sydney. 

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