Chances of fiscal cliff hitting higher: Barclays

Here are experts equity calls for the day on how the markets are expected to trade:

Barry Knapp, Barclays: In the wake of yesterday's elections, we believe the near-term monetary policy outlook is better, but we expect no significant reduction in public policy uncertainty, which shifts the risks to the downside for equities and risky assets. The chances of the fiscal cliff hitting are now higher and uncertainty should stay elevated for the next month. In equities, we suggest cutting risk or maintaining a defensive posture.

Pablo Goldberg, HSBC: With Obama re-elected as President and the Congress divided between Republicans & Democrats, there is a large sense of status quo. This has 2 implications, QE is likely to continue, which is good for fixed income. Secondly, uncertainties over the fiscal cliff and its impact on growth are likely to be maintained, in particular if the Republicans take the popular vote. This is bad for equities.