Markets spooked as the two US poll scenarios investors feared play out

The main worry around divided government: Markets have been hoping for a large fiscal stimulus package that will be less likely if the two parties need to work together

Heading into the US election, two potential outcomes were giving investors heartburn: A contested election, or a Joe Biden presidency with a Republican Senate.

Now, both look more likely than 24 hours ago.

President Donald Trump falsely called himself the victor and said he would ask the Supreme Court to intervene as results look to close to call in many battleground states. US stock futures swung between gains and losses, Treasuries jumped and cross-asset volatility rose on renewed fears over protracted post-election wrangling.

“The key inflection point for markets will be whether the government -- be it Biden- or Trump-led -- is divided,”