Vote and virus: volatile markets bring reminder of March turmoil

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Reuters Money Make sense of the market.       Tweet       Share Vote and virus: volatile markets bring reminder of March turmoil Equity and currency volatility shot higher on Wednesday and the cost of sourcing dollars rose, reflecting fears that the U.S. election and resurgent COVID-19 pandemic could tip markets back into the sort of chaos endured earlier this year. Investors bet on U.S. credit deterioration as stocks sell off Investors pulled out of U.S. corporate bonds on Wednesday as the three major stock indexes sold off on reports of higher COVID-19 cases worldwide and on nerves about next week's U.S. presidential election. Consumer companies pitch discounts, bargain products as economic malaise looms Unilever, Procter & Gamble and other major consumer goods manufacturers are touting lower-priced brands, smaller packages and discounts to woo penny-pinching shoppers struggling through the most severe global recession since the Great Depression of the 1930s. U.S. stock market braces for rocky week ahead of contentious U.S. election Wall Street faces a rocky run-up to Election Day, with mounting worries about the outcome in Washington adding to nerves about the coronavirus pandemic and fading chances of stimulus. BlackRock downgrades U.S. Treasuries ahead of election Top asset manager BlackRock Inc on Monday downgraded U.S. Treasuries and upgraded their inflation-linked peers ahead of the U.S. election. Investors pile into options to bet on rate rise, Treasury weakness Investors have been buying options on eurodollar futures and interest rate swaps to bet on higher rates and falling U.S. Treasury debt prices if lawmakers pass more fiscal stimulus after next month's presidential election, if not before. U.S. banks sweat regulatory exposure from pandemic loans Banks that facilitated the U.S. government's Paycheck Protection Program at first saw the effort as a small revenue booster with a patriotic bonus, shepherding $525 billion in loans to businesses slammed by the fallout of the COVID-19 pandemic. Analysis: Green is the color of money for funds betting on a Biden win Fund managers betting that green-type stocks with environmental, social and governance (ESG) credentials will benefit from an expected win by Democrat Joe Biden in the U.S. presidential election are also looking at a swathe of other companies expected to rise along with them. Related Videos LVMH, Tiffany agree lower price in takeover deal Business Virus fears spark biggest sell-off since June Markets Introducing the all-new Reuters News app The new Reuters News app is here, redesigned from the ground up to fit your busy life. Get it now on iOS Your world. Your news. More Newsletters Get Reuters News App Get Reuters TV App               © 2020 Thomson Reuters. All rights reserved. 3 Times Square, New York, NY 10036 Email Preferences    |   Privacy Policy    |   Terms and Conditions