A nail-biting US election ended up buoying South African assets all round, with the equity and bond markets rallying and the rand moving to its firmest level since the pandemic struck. The surprises delivered by the voting results, such as a divided US government, have been interpreted by investors as favourable for risk assets, all else being equal.
Far from proving a third panic event of the year, after Covid-19 and the September overvaluation correction, the US elections provided an initial turbo-boost to global stock markets and a promising fillip to risk assets, such as emerging market equities, bonds and currencies.
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