Impact of Mid-Term Election on Stock Market
The US mid-term election is tomorrow but the market is largely ignoring it, and rightly so. Given the BoJ's massive stimulus last Friday, oil price gyration due to Saudi Arabia today, the ECB on Thursday and Payroll on Friday, investors have a lot on their plate. For what its worth, Nate Silver gives 72% chance of Republicans taking over the Senate. But we may not know that for a while because (1) ballot counting in Alaska can go on for days (2) if winning candidate in Louisiana does not get over 50%, the run-off elections will be held on December 6, and (3) if winning candidate in Georgia does not get over 50%, the run-off elections will be held on January 6.
There is a fair bit of research on the impact of mid-term election on stock market. Fidelity says, the 12 months after midterm elections tend to be good for stocks, averaging 16.1% gain. UBS technical analyst, puts the mid-term election in the context of 4-year US Presidential Election Year Cycle Theory. Again the outcome is good for the market. The reason is that, after the mid-term election, the political machinery of the incumbent focuses on the Presidential election and that produces favorable policies towards the market in the 3rd and 4th year of the Presidency.
M&A Continues
French advertising group Publicis Groupe SA agreed to buy Boston-based Sapient for $3.7 billion in cash, a massive premium to Friday's close. The deal will expand Publicis into fast growing digital business.
Lab Corp agreed to buy Covance, a CRO (Clinical Research Organization) or a clinical trial outsourcing company for $6.1 billion. Investors were disappointed with the deal given that there are no synergies between the two , and duly punished Lab Corp, whose shares were down 7.37%.
Saudi Move the Oil Market
Crude oil initially rallied after the newswire said they raised December Arab Light to Asian customers by 95c/bbl to a 10c discount to Oman/Dubai average.
However when another headline hit that said Saudis lowered the premium for Arab Light relative to the US Gulf Coast benchmark by 45c/bbl, oil markets took a beating.
Professor Kenneth Goldsmith of University of Pennsylvania Offers a Course to "Waste Time Online"
Yeap, that's what you get for $47,000/year in tuition (also on Yahoo!Finance).
Lab Corp agreed to buy Covance, a CRO (Clinical Research Organization) or a clinical trial outsourcing company for $6.1 billion. Investors were disappointed with the deal given that there are no synergies between the two , and duly punished Lab Corp, whose shares were down 7.37%.
Saudi Move the Oil Market
Crude oil initially rallied after the newswire said they raised December Arab Light to Asian customers by 95c/bbl to a 10c discount to Oman/Dubai average.
However when another headline hit that said Saudis lowered the premium for Arab Light relative to the US Gulf Coast benchmark by 45c/bbl, oil markets took a beating.
Professor Kenneth Goldsmith of University of Pennsylvania Offers a Course to "Waste Time Online"
Yeap, that's what you get for $47,000/year in tuition (also on Yahoo!Finance).
