[ad_1]
Deal
Markets will welcome certainty after major networks declared Democrat Joe Biden the winner of the U.S. presidential election on Saturday, offering some relief after days the country received conflicting reports on who might be in. the White House the next term.
FILE PHOTO: A girl in a car holds a poster while attending the campaign event of US Democratic presidential candidate Joe Biden in Philadelphia, Pennsylvania, USA, November 1, 2020. REUTERS / Kevin Lamarque
NEW YORK: Markets will welcome the certainty after major networks declared Democrat Joe Biden the winner of the US presidential election on Saturday, offering some relief after days the country received conflicting reports on who might be in the White House the next term.
The media and voting centers, including the Associated Press, NBC and Edison Research, on which Reuters is based, called for Biden’s presidency, leaving little doubt that he had won enough Electoral College votes to win.
“Biden is good news for the markets,” Christopher Stanton, chief investment officer at Sunrise Capital Partners, said Saturday. “We are all so tired of the whip that came with Trump’s tweets.”
Biden’s rival, current Republican President Donald Trump, has vowed to fight the results and said his campaign will file more court proceedings on Monday. The Republican National Committee has been trying to raise at least $ 60 million to fund legal challenges presented by Trump over the election results, Reuters reported on Friday.
Even if those battles are unsuccessful, investors also said ahead of the election that they were concerned about who Biden might name to his cabinet, and whether the United States Senate would go to Republicans or Democrats.
A Republican Senate is also expected to control Biden’s cabinet appointments, forcing him to opt for more moderate selections.
It is unclear whether their choices are considered market-friendly. For example, investors will closely follow the election of Biden for secretary of the Treasury, who will likely participate in any coronavirus tax relief to be negotiated with Congress, with markets obsessed in recent weeks with the prospects of a stimulus package.
Biden has turned to former derivatives market regulator Gary Gensler to work out a transition plan for oversight of the financial industry, according to a person with direct knowledge of the matter.
For months, investors have worried that the worst-case scenario for markets would be if a contested result creates uncertainty about results that drag on for weeks, so if Trump gains some traction with his challenges, that could shake up prices. of assets.
Major US stock indices posted their biggest weekly gains since April this week, as investors bet Biden would win and Republicans would stay in the Senate, a scenario that could prevent any major tax hikes or adjustments. regulatory that tightens companies. The planned runoffs in two Senate elections in Georgia could cloud that scenario.
However, for now, investors were happy with the call for the election after four tense days since Election Day Tuesday.
“It seemed inevitable,” said Rick Meckler, a partner at Cherry Lane Investments. “This is what the market anticipated, this is what led to the rise.”
(Reported by Lewis Krauskopf and Koh Gui Qing; Additional reporting by Ira Iosebashvili and Megan Davies; Written by Lauren Tara LaCapra; Edited by Alden Bentley and Grant McCool)
