Asian markets initially reacted well to Obama's victory, only to then retrace part of the gain. Indeed, the confirmation of the incumbent president does not change much with respect to the challenges to be faced, first of all the 'precipice', the 'fiscal cliff' at the end of the year, when, for a total of 600 billion dollars, automatic spending cuts and tax increases will be triggered (the disappearance of past reductions in tax rates).
Even the dollar, which had gained yesterday due to the imminent disappearance of uncertainty, had also recorded an increase in the first moments of the victoryand then return to the starting point. Easy monetary policy is favored by Obama, and many fear that further money creation by the Fed will eventually weaken the greenback. Oil is at $88/barrel and holds yesterday's gains, while gold strengthens for the same reasons related to the prospects of a weaker dollar. But these reactions are still skin-deep. The real game will be played on the evolution of the real American economy, and here the prospects are for a more lively recovery. In the background remain the unknowns related to the Greek vote on austerity measures, and the change in Chinese leadership.
http://www.bloomberg.com/news/2012-11-07/asia-stocks-advance-before-u-s-election-results-while-oil-slips.html
