Markets

Focus Returned to Fiscal Cliff and Eurozone after Obama Reelected

The rally to celebrate Obama's reelection was short-lived as market focus quickly turned to fiscal cliff and the lingering political gridlock with lower house being controlled by Republicans and senate by Democrats. Meanwhile, investors began to concern about the core economies in the Eurozone as the sovereign debt crisis, which has remained unresolved, has started to hurt Germany's economy. The European Commission downgraded its growth forecasts at its latest report. Wall Street dropped with the DJIA and S&P 500 Indices losing -2.36% and -2.37% respectively. In the commodity sector, crude oil prices slumped, erasing gains made over the past 2 days as crude oil inventories rose in the US last week despite supply disruptions caused by Hurricane Sandy. Gold ended the day modestly higher although part of the gains was pared as the post-election rally faded. Obama's reelection suggested the Fed's asset purchases stance should be preserved, lending support to the yellow metal.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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