How might financial markets respond to the US election result?

A Biden victory is expected by markets, but what is likely to happen if the result is inconclusive or contested? What happens if there is a surprise Donald Trump victory? Ben Chu looks at the possibilities

A  contested election “seems underpriced by markets,” warns some analysts (REUTERS)

The opinion polls suggest a strong likelihood of a win for Joe Biden in the US presidential election – but what would that mean for financial markets?  

Given the former vice president has had a considerable polling lead throughout most of this campaign, does that imply that the markets will have already “priced in” that outcome? Or could there be further moves if the result is confirmed? And what, by that same token, is likely to happen if the result is (at least initially) inconclusive or contested?  

What happens if there is a surprise Donald Trump victory? Would markets plunge?