Hong Kong: Most Asian markets rose on Thursday as investors awaited Joe Biden’s proposal for a large-scale stimulus plan and comments from Federal Reserve leaders on the policy outlook.
The news that Donald Trump had been impeached for the second time did not seem to have a direct impact on emotions, despite the fear that the entire United States was turbulent, leading to the inauguration of Biden, who rushed to the Capitol last week, to take office on January 20.
The hope that the world’s top economies will reemerge huge expenditures also obscures concerns about the surge in virus cases and the daily record of deaths in the United States and the United Kingdom. These concerns have forced the government to impose new lockdown measures.
Analysts said a drug being developed by pharma giant Johnson & Johnson could make a huge difference as it would only need one jab and can be transported more easily.
But for now, the focus is on the president-elect’s new economic rescue plan, which he has said would be in the trillions of dollars, with a push for $2,000 cash handouts.
“Investors are willing to look past the political big uglies (in Washington) to sunny days ahead,” said Axi strategist Stephen Innes.
“Expectations are building for additional and perhaps larger fiscal stimulus efforts as pandemic priorities remain the first order of business for the Biden administration.”
However, there is a worry that with the Senate unlikely to debate the impeachment until after Biden takes office, his legislative programme and cabinet confirmations could be held up.
However, Inness added that the remarks of top Fed officials also made traders feel gratified. They said that they did not support ending the bank’s large-scale monetary easing plan in the short term.
Fed boss Jerome Powell will comment in a webinar later in the day, hoping to come up with a better idea on the policy direction based on Biden’s spending plan. Most observers believe that this will boost the inflation rate. This in turn pushes up interest rate expectations.
The bank’s gigantic bond-buying scheme and easy-money policies have been a key driver of markets’ recovery from their March troughs