|

US election monitor: Final thoughts – And a guide to following the results

Tune into Danske Research's morning call on 6th of November to hear our quick takes on preliminary election results, implications for US economy and the Fed.

The election week is here and while Trump held the momentum over the past month, recent data suggests the results remain up in the air. Polymarket now shows Trump's lead narrowing, with PredictIt now even favouring Harris. Over the weekend, Harris was in the lead in Iowa - a state Trump won in 2016 and 2020 - per late October Des Moines Register polling. However, early November polling by Emerson shows Trump leading Iowa by 10 pp., underscoring how volatile poll results are. In swing states, Harris has edged back into slim leads in Michigan and Wisconsin, both must-win states for her, while Trump expanded his lead in Arizona, Georgia, Nevada and North Carolina (see p. 3-4 for charts).

In the most likely scenario, northern states of Michigan, Wisconsin and Pennsylvania will determine the final election result. If Harris secures all three, she is the winner. If Trump wins the southern states where he has held the strongest position in polls (Georgia, Arizona and North Carolina), then securing any of the three northern states would guarantee him the victory. Nevada is also a swing state, but as it awards the smallest number of delegates (6), its results will likely play a more minor role.

Early voting turnout has been high with 76 million ballots cast already in advance. This is roughly 48% of the total votes cast in 2020. Historically, high voter turnout has benefited Democrats, who have also typically been more active early voters. According to NBC, registered Democrats have made up the largest share of this year's early voters as well, but how this translates into overall voting activity remains uncertain. The share of early voters (out of total) has been rising constantly over the years and especially in the 2020 elections organized during the pandemic restrictions.

We will also pay close attention to congressional elections, and especially the House of Representatives. Prediction markets see the election practically as a coinflip and it could have a major impact on the future of fiscal policies. The party that wins the majority can also nominate the Speaker of the House who controls which bills the House votes to be sent to Senate. If Republicans lose their current slim majority in the House, Trump's ability to push through the widely expected looser tax policies might be severely limited, even if he wins the presidential election. Keep in mind, even as a 'lame duck' President, Trump would still be able to set up new tariffs via executive orders.

Unless Trump comes out clearly in the lead in the first states to report their result, there is a high likelihood that the total result will not be known by the morning on the 6th of November European time. Pennsylvania and Wisconsin do not allow for pre-counting early votes before the election date, which means they are likely among the last states where the result is called (the former was only called by Friday evening in 2020). Michigan was also called close to midnight between 6th and 7th of November European time in 2020, and again, Trump needs at least one of the three states to confirm his victory. House elections were also only called on Thursday in 2020, so knowing the final balance of power could well drag out longer than usual. Democrats' majority in the Senate was only confirmed in January 2021 after the party surprisingly won two run-offs in Georgia. This time, Republicans are the clear favourites to win control of Senate, however.

Download The Full US Election Monitor

Author

Danske Research Team

Danske Research Team

Danske Bank A/S

Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.

More from Danske Research Team
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD remains below 1.1750 ahead of ECB policy decision

EUR/USD remains on the back foot below 1.1750 in the European session on Thursday. Traders move to the sidelines and refrain from placing any fresh directional bets on the pair ahead of the ECB policy announcements and the US CPI inflation data. 

GBP/USD stays defensive below 1.3400, awaits BoE and US CPI

GBP/USD oscillates in a narrow band below 1.3400 in European trading on Thursday. The pair trades with caution as markets eagerly await the BoE policy verdict and US consumer inflation data for fresh directional impetus. 

Gold holds losses below $4,350 ahead of US CPI report

Gold struggles to capitalize on the previous day's move higher and holds its pullback below $4,350 in the European session on Thursday. The downtick could be attributed to some profit-taking amid a US Dollar bounce. All eyes now remain on the US CPI inflation data. 

BoE set to resume easing cycle, trimming interest rate to 3.75%

The Bank of England will announce its last monetary policy decision of 2025 on Thursday at 12:00 GMT. The market prices a 25-basis-point rate cut, which would leave the BoE’s Bank Rate at 3.75%.

US CPI data expected to show inflation rose slightly to 3.1%, cooling Fed rate cut bets for January

The US Bureau of Labor Statistics will publish the all-important Consumer Price Index (CPI) data for November on Thursday at 13:30 GMT. The CPI inflation in the US is expected to rise at an annual rate of 3.1% in November

Dogecoin Price Forecast: DOGE breaks key support amid declining investor confidence

Dogecoin (DOGE) trades in the red on Thursday, following a 4% decline on the previous day. The DOGE supply in profit declines as large wallet investors trim their portfolios. Derivatives data shows a surge in bearish positions amid declining retail interest.