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Key takeaways from the debate
Overnight poll found Kamala Harris to be the winner
Coming into the debate, VP Pence will find himself on the defensive following Trump’s widely panned performance to last week’s debate. He will need to answer the administration’s handling of the COVID-19 situation. He will need to defend Trump’s questionable behavior that led to his COVID-19 diagnosis, and his reckless behavior in his “joy ride” to see supporters around the grounds of the hospital. As a result, the Trump campaign has found itself in a deeper hole in national polls, with two leading trakers of poll averages indicating that Biden moved up from a 6.5 percentage point lead before the 9/29 debate to a 9.4 percentage point margin as of 10/7. According to a CNN poll, Americans cited Harris as the winner 59%-38%. Following the debate, PredictIt, the political betting site, continued to move further in Biden’s direction, with 69% expecting him to win the Presidency with a Trump re-election at 35%. |
We could see an increase in scrutiny of Biden’s economic in the coming weeks. |
Investment implications
With market expectations of a contested election having declined and markets looking for a Biden win, we could see an increase in scrutiny of Biden’s economic, fiscal and regulatory agenda. This is likely to lead to greater volatility in financial markets. |
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