U.S. Stocks Mixed as Caution Prevails Ahead of U.S. Presidential Election
U.S stocks continued to trend mixed near the flat-line in mid-day trade, as market participants are taking a relatively cautious approach ahead of the U.S. Presidential election set for tomorrow. In the absence of any other major market-moving news, the election should remain in the spotlight, and according to the polls, both candidates are locked in a dead heat at the national level, although President Obama appears to have the edge in the electoral college race.
While there are differing opinions over which candidate would be better for America's economy, market watchers are focused on how the incoming leader will address the impending fiscal cliff and the nation's ballooning debt levels. A number of money managers fret that the fiscal cliff and the debt pose serious threats to the country's economy and could even drive it back into a recession.
Overseas markets are down moderately across the board. China's ruling communist party is preparing to shuffle its top ranks, starting this Thursday, a process that will have long-term implications for the country's economy. In Europe, stocks were under pressure as the Greek parliament prepares to vote later this week on the latest round of budget cuts and tax hikes demanded by the Troika. If the country votes against the austerity measures, it may not receive its next tranche of bailout money.
Adding to a slight drag on the markets is the October ISM Services Index, which fell to 54.2 vs. 54.5. The index was expected to come in at 55.0, down slightly from 55.1 from the month prior, according to a survey of analysts by Briefing.com.
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