Stocks surged across the globe last week as the US election risk passed. The S&P500 recorded its best week since April, climbing 7.32 per cent, supported by a significant drop in the US dollar, and as the VIX index dropped from 41 to 25 by the week’s close.
The surge in US stocks paradoxically came in large part to due a pricing out of a Democrat “Blue Wave” and the large-scale fiscal stimulus it was expected to bring, with a drop in US bond yields underpinning an outperformance in US tech stocks. Locally, the ASX 200 added 4.32 per cent.
The S&P 500 recorded its best week since April,…
