The day after what many are calling a chaotic and contentious presidential debate, analysts are nose to the grindstone, trying to figure out what, if anything, it means for markets and the coming election.Equities are
dropping, as investors reeled from the back-and-forth arguing between incumbent President Donald Trump and Democratic contender Joe Biden, which never managed a proper debate on the key topics.
Hereâ€™s a round up of what analysts on Wall Street and elsewhere are saying about that exchange:
â€œPerhaps the only point worth mentioning is that the debate may have increased expectations for a contested election result. International investors have been prepared to entertain some extreme views on this topic (just as they entertained extreme views on the future of the euro area in the past). Given the importance of international investors to U.S. markets, this may add volatility around the election.â€ â€” Paul Donovan, chief economist at UBS Global Wealth Management.
â€œOn the margin, Trumpâ€™s more assertive stance, and Bidenâ€™s measured responses, may have exacerbated some voter concerns over Bidenâ€™s age. That said, we believe the debate probably did not shift enough voters to change the current base case of Biden winning in November.â€ â€” Team of Nomura economists led by Lewis Alexander.
â€œIf last nightâ€™s Presidential debate was supposed to inform and educate, all it did was merely confirm the credibility deficit in U.S. politics, as President Trump, and Democrat nominee Joe Biden engaged in what can only be described as a fact-free name-calling contestâ€¦ the fractious nature of last nightâ€™s so-called debate raises questions as to the outcome of next monthâ€™s election, as well as the prospect of an imminent stimulus deal.â€ â€” Michael Hewson, chief market analyst at CMC Markets.
â€œIn a raucous debate that was indeed full of shouting, it is unclear that either President Trump or Vice President Biden changed the trajectory of the election last nightâ€¦There was very little substance in the debate and almost no new information proffered. The story of the debate will likely surround the presidentâ€™s consistent interruption, though Mr. Biden was not able to stay above the fray and traded insults at times with Mr. Trump. Acrimony ruled.â€ â€” Deutsche Bank strategists Jim Reid, Craig Nicol and Henry Allen.
====================================================================================Should be an interesting few days in the market, as it absorbs last night's results. IMO, (1) Trump needed a deeper knock out blow to Slow Joe, and (2) Biden whether he cheated with an ear piece or not, far far exceeded expectations by not drooling over himself in a 90 minute period. In any case, I hope Chris Wallace is catching hell this morning at work for making this a debacle and basically helpin Biden to the presidency.