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So how volatile are US elections anyway?
With just one week to go until the US election, we take a statistical look at how key markets have performed in the days surrounding this major event. The data may appear daunting at first, but there are a couple of distinct patterns which are worth noting. • European and US stocks tend to rise the day prior, and of the US election, yet hand back gains the two days after • The Japanese yen (JPY) tends to attract safe-haven flows two days prior to the election (T-2) and the two days after (T+1 and T+2) • Volatility also increases at T+1, although keep in mind that this captures the overnight volatility form the ... (full story)