Markets are fully focused on the US presidential elections. Incoming reports hint that Democrats may win the White House. Investors completely overlooked the ADP employment report for October that was released at 1:15 pm GMT. Reading was expected to show a 650k employment increase in the previous month, down from 753k in September (revised higher from 749k). However, the report turned out to be a huge disappointment as it showed an employment gain of just 365k! If confirmed by the NFP report on Friday, it would mean that US labour market recovery has flattened before pandemic losses could be regained. Markets did not react to the release but investors should keep in mind that, as Congress is likely to remain divided after elections, gridlock over the new stimulus bill may continue.
US500 completely ignores disappointing ADP reading and continues to trade near overnight highs at 3,430 pts. Source: xStation5
