Thursday's US debate focal point of week ahead

IT is three weeks before Americans elect a new president on Nov 8 and until the outcome is known, it's unlikely that traders and investors in stocks will take on big bets either way. The reason is simple - Democrat Hillary Clinton is seen as being more pro-establishment and offers continuity, which markets like; Republican Donald Trump is seen as being anti-trade and his threat to tear up trade pacts is very much disliked by markets.

Opinion polls may place Mrs Clinton in the lead but as Brexit showed in June, such surveys can be dramatically wrong - hence the unwillingness to commit until the election is over.

The third debate between the two candidates takes place this week (Thursday morning, local time) and this may give markets something to trade on. Mrs Clinton appears to have won the first two but Mr Trump appears to have gained some ground at the second debate, so it's still game on for the third encounter. Therefore, it's likely that markets will be quiet until it is completed and a clearer picture emerges of who the likely winner might be.