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Joe biden won the U.S. presidential election, despite Trump continuing to invoke legal battles against voter fraud.
An expected result of markets taken for granted in the last few hours. How are world stock markets reacting to the new American scenario?
All the attention is directed to Washington and the White House, to understand in which direction the new president will go, especially in economic-financial and international policy.
For now, optimism dominates a financial world and not only. There is the effect Biden in markets today, Monday, November 9.
President of Biden USA: Positive markets
Stock exchanges, rising oil prices and a weak US dollar on Monday. Expectations for fewer regulatory reforms and more monetary stimulus under the US president-elect. Joe biden risk appetite support.
The electoral victory of the Democratic candidate had already been put to the test of markets, which for the past week had been negotiating for a Biden presidency and a Republican-controlled US Senate.
Today, Monday, November 9, S&P 500 futures rose more than1.5%, based on the strongest week since April for the benchmark.
Contracts on the Nasdaq 100 index of technology companies, which it outperformed since Tuesday’s vote, rose by more than 2%. There have also been large-scale gains in Asia-Pacific and the european futures They traded higher: Milan + 2.08%, Paris + 1.58%, Frankfurt + 1.93%, London + 1.37%.
The MSCI Asian Index rose 1.4% to 614.73 points, the highest since January 2018. It rose 6.2% last week, posting its best weekly performance since early June.
Focus on the United States: What do investors expect?
Biden in his victory speech he promised swift action against the pandemic and a change of power to the White House neat though Donald trump it is weighing legal challenges and has so far refused to acknowledge victory.
Since Sunday there has been a growing feeling among Republican allies that he had now lost and there was very little to do.
According to analysts, the general sentiment among investors is that the the elections ended with a net result, without further disputes. The focus is now on Biden’s next moves, as noted by Ben Emons of Medley Global Advisors:
“The first agenda on Monday morning will really be about re-evaluating the strategy under the Biden presidency in terms of domestic and foreign policy“
However, there is still a line based on caution. Jim Wilding of Confluence Financial Partners assessed that: “While we remain positive on the medium-term outlook and believe that a divided government reduces the chances of a bearish scenario occurring, we would refrain from unbridled enthusiasm at current levels.”
A fiscal stimulus plan is still possible even if it is less than expected. This puts the focus on Federal Reserve and its tools to support the economic recovery of American power.
Finally, with i global markets heading towards an all-time high and coming off their best week since April (up more than 7%), investors’ attention is likely to return to the global economic recovery.
The threat remains the coronavirus, with global Covid-19 cases exceeding 50 million.
