The US Mid-Term Elections And The Fed Meeting Will Exacerbate The Stock Market Volatility.

Early in November 1st, Beijing time.

This Tuesday, the United States will welcome the long-awaited mid-term elections.

Judging from the current signs, the Democratic Party and the Republican Party are evenly matched.

In the future, whoever wins or loses will still have many variables.

But market participants point out that voters seem to be more interested in the Republican Party at the moment, and they think that the victory of the Republican Party may be more beneficial to the stock market.

Traders at the online forum InTrade said that the probability of the Republican majority in the house of Representatives is more than 90%, which means that the victory of the Republican Party is more important than winning the election itself.

A semi annual survey released by Baron BusinessWeek shows that 70% of the respondents believe that the US Republican Party will win the Congressional mid-term elections in November 2nd, and 17% of the respondents believe that the "win win" of the Republican Party will bring about a surge in the stock market.

The survey also showed that only 29% of the respondents believed that President Obama (BarackObama) would be re elected in the 2012 election, while 28% of the respondents thought that former Massachusetts governor Romney (MittRomney) would become a Republican candidate.

At the same time, the Fed interest conference will also be held on the 2-3 th of this month.

Market participants have said earlier that the possibility of a new round of quantitative easing monetary policy is enormous.

However, because the scale of the Fed's purchases of treasury bonds remains variable, market sentiment is relatively cautious, and the volume of trading on the US stock market last Friday was rather light.

Industry analysts pointed out that due to the current economic data is good, the size of the Fed's purchases of treasury bonds may be lower than market expectations, which has become an important factor for investors to delay stock buying behavior.

On the other hand, employment data will also become the touchstone of current economic performance.

The federal government will issue a non farm employment data report on Friday. The Reuters conducted an investigation of market market economists. They believe that the increase in October was 60000.

Nevertheless, the current unemployment rate in the United States is still hovering at 9.6%.

In addition, the S & P enterprises will release their earnings this week. Only when corporate profits are good, positive economic data will enable us stocks to continue to gain momentum and achieve a sustained rebound.