Equities rally after Biden is declared winner of US vote

Equities rally after Biden is declared winner of US vote

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Hong Kong: Stocks, oil and high-yield currencies announced their gains on Monday, after Joe Biden was announced as the winner of the US election last weekend. This removed the main source of uncertainty, and traders hope that lawmakers will now It will focus on adopting a new measure to stimulate the world economy. The largest economy.

Although Donald Trump has not yet acknowledged and raised some legal challenges, it is widely accepted that Democrats will become the 46th president, which removes a key obstacle for stock traders this year.

Observers said that the focus will now be on Biden’s economic and foreign policies, and hope that after four years of vigorous real estate tycoon, there will be no more faltering leadership skills.

Last week, the market has begun to soar because the former vice president is clearly fighting for victory, and Republicans are likely to hold a Senate meeting, allowing them to control any major regulatory or tax policies.

On Monday, Tokyo led the gains, rising 2%, while Hong Kong, Shanghai, Sydney, Singapore, Seoul, Wellington and Taipei all rose more than 1%.

Wall Street futures also rose, with the Dow, S&P 500 and Nasdaq all opening up more than 1%.

Although members of Congress have not been able to finalize anything after months of bargaining, traders are now on Capitol Hill seeking a new economic rescue plan, although no new plan will be as big as the Democratic-led Congress expected.

“More fiscal support is likely forthcoming,” said Invesco strategists including Brian Levitt. “While it may not be the outsize fiscal package that the Democrats had envisioned, it will likely be large enough to provide an additional boost to the economic recovery.

“Paradoxically, a more modest fiscal bill may serve to extend the market and business cycles, as it would be unlikely to bring forward the inflationary pressures that presage Fed tightening and the end of cycles.”

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