Stocks were up big during the Asian session but have dropped sharply over the previous hours, with the DOW and SPX already in negative territory. The same goes for EU indices.
In the FX, the USD is trading higher across the board, but that might not last long. Metals and oil plunged as a stronger greenback undermined commodities.
Trump has won Florida, Iowa, and Ohio, critical battleground states, yet Biden has claimed Arizona, a state the current president won four years ago. Several key states, including Michigan, Pennsylvania, and Wisconsin, are still counting, and that could take some time due to the unprecedented number of mail-in votes.
However, it looks like the Senate will remain controlled by Republicans.
If Trump wins, the likelihood of a large stimulus is low, as many Republicans opposed the idea of increasing the next fiscal aid beyond 2 trillion USD. That might be short-term bearish, but since Trump's economic policies have helped the stock market over the previous years, the long-term trend in equities will most likely remain bullish, especially when the Fed prints money at the current pace.