“Stop the count!” – Donald Trump What a mess! Biden is now officially declared the winner of the election, but it doesn’t seem like Donald Trump intends to throw in the towel anytime soon. In any case, it is very unlikely that Trump will be able to prolong the turbulence until after 8th of December and it is even more unlikely that he will be able to turn the tide on the election result after a judicial battle.  No Blue Wave, but a Purple Mix. That’s the market’s take-away from the US presidential election at the time of writing.  Today a raft of court cases will be filed in no less than 10 states, claiming everything from alien votes to dead people registering and casting their votes.

Stocks are expected to stay buoyant on Monday while the dollar is seen likely to extend its downward trend as Democrat Joe Biden won the U.S. presidential election in a move that analysts say would prop up risk assets. The outcome was largely priced in by markets, which had been trading with the view of a Biden presidency and a Republican-controlled U.S. Senate late last week. “This combination, of course, likely means a Biden presidency’s ambitions will be curtailed in a grid-locked political scene with very few landmark legislative changes being enacted by Congress.  Wall Streeters who offered comments felt there was little doubt Biden would ultimately succeed. Election predictors including the Associated Press, NBC, Fox News and Edison Research, upon which Reuters relies.

  • Bitcoin’s rally above $15,000 has reignited debate over whether the cryptocurrency is so-called digital gold or a perilously risky bet as investors grapple with the coronavirus pandemic. The world’s most popular virtual unit has gained over 30 percent in value in almost three weeks up to Friday, taking it close to its December 2017 peak when it reached nearly $20,000. After a rollercoaster ride on markets since then, it began its latest meteoric rise on October 21, after U.S. online payments provider PayPal announced that it would enable account holders to use cryptocurrency.
  • China has made advances in solar and wind energy, and the companies in those industries are ready to serve the American market by putting manufacturing plants in the US. All the Biden administration has to do is the change the regulations that are biased against investments from China. Most countries welcome foreign investment for manufacturing, whether from China or any other nation, because such investments create jobs. But Washington has over the Trump presidency, taken a twisted view that Chinese investments are for the purpose of stealing from America.
  • Oil prices were higher in the Monday morning of Asian trading hours, with international benchmark Brent crude futures up 2.71% to $40.52 per barrel. U.S. crude futures jumped 2.83% to $38.19 per barrel. The onshore Chinese yuan strengthened to 6.5935 per dollar, after seeing levels above 6.65 last week.
  • On the coronavirus front, infections continue to surge. The U.S. recently reported more than 126,000 new infections for two day in a row.  Globally, the number of coronavirus infections crossed the 50 million mark on Sunday.

By the close of trade on Friday the Rand had strengthened against the Dollar.  In early trade on Monday the Rand again opened on the front foot at:

  • USD – ZAR 15.5375
  • EUR – ZAR  18.4784
  • GBP – ZAR  20.4851
  • CNY – ZAR  0.4239
  • MUR – ZAR  2.5907

Have a great Monday and start to the week.  It’s going to be wet along the east coast, so drive safely.