41% of potential voters are supporting Trump while 57% are backing Joe Biden
After a rally on Wall Street seen overnight, risk demand started to wane on Tuesday, resulting in mixed trading during the European hours. Regional stocks are relatively steady today, struggling for a clear direction as investors have already digested Trump’s release from the hospital. Now, the market focus is on further negotiations on stimulus measures in the United States.
European stocks opened marginally higher but failed to preserve the bullish bias and turned mixed-to-negative as a result. Investors are also focused on incoming statements from major central banks’ officials. In particular, ECB President Lagarde said the recovery is incomplete and uncertain, opening the door to more monetary stimulus.
The comment added to the uncertainty surrounding the state of the economy and made the euro retreat from intraday highs around the 1.18 handle. She also said that the central bank is closely monitoring the exchange rate developments and doesn’t see a complete economic recovery until the end of 2022.
Elsewhere, according to the latest poll revealed by CNN, 41% of potential voters are supporting Trump while 57% are backing Joe Biden in the upcoming presidential election in November. Trump’s disease could affect his rating and add to uncertainty ahead of the election that will likely bring much more volatility to the markets.
Also, according to the latest news, talks between Pelosi and Mnuchin are going very slowly. As a reminder, the negotiations are ongoing now, and some statements from this front could follow later in the day. Also, investors will focus on the speech from the Federal Reserve Governor Jerome Powell due later today. If risk sentiment continues to deteriorate any time soon, dollar demand could pick up again and bring high-yielding currencies back under pressure.