Reuters. File photo: A man works on the Tokyo Stock Exchange after the market opened in Tokyo2/2
By Wayne Cole
SYDNEY (Reuters) – Asian stocks rose on Thursday and bonds rallied as investors rallied against the US dollar. The prospect of a policy gridlock would largely favor industries while curbing government engagement.
The risk of a long-running election remained high, although the count was moving smoothly ahead of the Democratic challenger Bn Biden in the major states.
With the big financial stimulus in the working sector, a second wave of near free liquidity seemed inevitable.
“Financial markets are virtually the future, monetary policy driving asset prices is unlimited globally funded by zero-per-cent central bank money and especially by the Federal Reserve,” said Jeffrey Haley, senior market analyst at Oenda. .
“The election was a win over equity prices, commodity prices, higher house prices, a boom in emerging markets and the US dollar.”
MSCI’s comprehensive index of Asia-Pacific stocks outside of Japan has reached its highest level since February 2018. 1.1% at the nine-month high and South Korea put 1.7%.
Chinese blue chips rose 1.1%, suggesting Biden could ease the White House trade war tariffs.
The S&P 500’s e-mini futures are up 0.8% and the Nasdaq futures are up 1.4%. EurostaxX 50 futures gained 0.1% and futures 0.2%.
Both President Donald Trump and Biden are preparing to get 270 electoral college college votes, as the states have the tallest number of mail-in. Biden remained optimistic about winning when Republicans came forward to sue and demand accountability.
(For the latest election results and more coverage, click here: https://www.reilers.com/world/us-election2020)
Betting sites led to Biden, who began the results, previously favoring Trump.
Democrats, however, were less likely to win the Senate, and Biden should take over the White House, pointing to Deadlock.
“Biden’s victory without full Senate support means lower risk of regulation and higher corporate / personal tax risk,” analysts at Nomura wrote in a note.
“Asset market reactions over the past 24 hours confirm this view, US 10-year yields are declining rapidly, and US tech / WFH / structural growth stocks are pushing the prospect of lower economic support.”
Big to win bonds
Bond markets assume that a split government will greatly reduce the likelihood of debt-funding spending on stimulus and infrastructure next year, and therefore a lower bond supply.
At one point on Wednesday, the 10-year Treasury yield fell 0.9 %%.
The overnight decline of 11 basis points was the only major move of the day after the panic in the March COVID-19 market.
As the Federal Reserve and Bank of England hold policy meetings, the U.S. The declining opportunity for monetary stimulus will force central banks to apply liquidity globally.
Both could be interesting given the need for central banks to work harder, said Chris Bouch MP, chief market analyst at IG.
“In particular, the Fed will have to play its QE role again, with a sigh of relief, to provide another bridge in the future, when hopefully, the government stimulus package will be agreed.”
After an overnight wild ride, re-focused on making the Fed easier. Last 93..362૨ was last compared to the top of 93..362૨, which is very close to the low of 93 93.307070 on Wednesday.
Similarly, the dollar stabilized at 104.26 yen soon after hitting 105.32 overnight. The euro is held at 1.1735, which is far from the low of 1.1602.
The Telegraph newspaper reported that Sterling had its own difficulties after the BoE was considering moving to a negative interest rate.
Which left the pound flat at $ 1.2961 compared to the overnight peak of 1.3139.
All talk of easing policy lays the floor under gold prices, leaving the metal shadow at $ 1,907 per ounce.
Oil prices turned slightly profitable. They jumped overnight on speculation that a dead U.S. The government will be unable to pass environmental laws that would favor other types of energy. [O/R]
On Wednesday, after falling 7%, it fell 526 cents to ડા 63 a barrel, while futures fell 57 cents to 6 60.66.
Graphic – Asia Stock Markets: https://product.datastream.com/dscharting/gateway.aspx?guid=516bc8cb-b44e-4346-bce3-06590d8e396b&action=REFRESH
Graphic – Asia-Pacific Appraisal: https://product.datastream.com/dscharting/gateway.aspx?guid=80e5bbdc-eae6-4b37-bc49-a2d8056b75de&action=REFRESH
