Equity futures fall further ahead of the European cash market open
The resurgence in the virus across major parts of the world is one of the reasons, but perhaps the market is also starting to wake up to the risks of the US election next week.
Election odds have been narrowing in recent days, and a 'blue wave' may not necessarily be a shoe-in. Pollsters may be overcompensating this year after the 2016 upset but as we have learned over the past few years, nothing is a given.
S&P 500 futures are now down by 1% while Nasdaq futures have slumped by 0.7% to start European morning trade. European futures are also deep in the red now (down by ~2%), while we are seeing oil prices fall by nearly 3% to $38.40.
Besides some mild strength in the yen, major currencies aren't budging but I would argue that eventually it will have to respond to the deteriorating risk conditions. The aussie in particular may not hold on to its early gains, after having also hit resistance at 0.7158.
