Last week the main geopolitical intrigue was the adoption of a large-scale stimulus package in the United States, today the main focus of investors is shifting to the elections, experts interviewed believe.
“By the end of the week, global investors will likely begin to prepare for the upcoming November 3 presidential elections in the U.S. Given the high uncertainty of the outcome, we can expect them to withdraw funds from emerging markets, including Russia, which will also put pressure on Russian assets,” Head of the Finam stock analysis department Igor Dodonov said.
Any news about coronavirus will also be in focus. One of the main threats to the global risk appetite comes from the second wave of the pandemic, which promotes new restrictive measures (mainly in Europe), Veles Capital analyst Elena Kozhukhova believes. Stabilization or improvement of the pandemic’s figures, as well as progress in the creation of vaccines and drugs for COVID-19 can enhance optimism in the markets, investment strategist at Alexander Bakhtin said.
In addition to geopolitical and viral news, markets will pay attention to meetings of leading central banks this week, including the European Central Bank and the Bank of Japan.
The volatility of the ruble may rise in the coming days due to various factors, experts said. “Support from the tax period is coming to an end, and the global demand for assets of developing countries remains unstable due to the tendency for investors to escape from viral risks. At the same time, a tense geopolitical background remains and is likely to stay in the near future as a specific factor of influence on ruble assets – the situation in Belarus, Nagorno-Karabakh, as well as new EU sanctions initiatives,” Bakhtin explained.