U.S. Stock futures and international markets traded higher in the last few hours before the start of Election Day celebrations.
By noon on Tuesday in Hong Kong, E-Mini S&P 500 futures were up 0.5%. In the previous session, the Dow Jones Industrial Average rose 1.6%, recovering from its worst week since March, while the S&P 500 and Nasdaq Composite also rose.
Stock indices in the Asia-Pacific region tracked the U.S. gains on Monday. Hong Kong’s Hang Seng Index and Australia’s S&P / ASX 200 rose 2% or more, while China’s Shanghai Composite and South Korea’s Kospi Composite rose more than 1%.
Paul Sandhu, head of Multiset Quant Solutions for Asia-Pacific at BNP Paribas Asset Management, said the optimism in the market was fueled by investors defeated by Democratic challenger Joe Biden, allowing U.S. legislators to allow more liberal stimulus. A package to stimulate economic activity.
Mr Sandhu said: “Biden sees victory as a surefire way to reduce Covid-1m and get a positive outcome on stimulus negotiations.” “If either party wins the Senate, the House and the presidency, it’s a sure win for a provocative deal, and that scenario is easier to do with the Democratic leadership because they already have the House.”
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