US futures and world stocks rose on Thursday as investors awaited the outcome of the US presidential election and reversed more gridlock in Washington.
European markets opened higher after a day’s gain in Asia, while the fate of the US presidential race remained negligible, nor did President Donald Trump or Democratic challenger Joe Biden garner the 270 electoral college votes needed to win.
Analysts say congressional divisions are expected once again between a Democratic House and the Republican Senate, and to keep US taxes and other policies relatively stable amid legislative deadlock. And the rise in share prices regardless of who is in the White House.
Again reassuring where they could go, “Markets cheered that this is Democratic White. . . The House and Republican Senate are the ‘Goldilocks’ result. In other words, a ‘Goldilocks gridlock, ho Mizuho bank said in a comment.
Jackson Wong, asset management director at Eder Hill Capital, said that with an expectation that Biden has a chance to win, it is hoped that US foreign policies “may be more clear”. He said, “Investors are happy for this. So the markets are doing well.”
But in most markets, Rallonauer counties have been on the rise since Tuesday’s election, with job losses and recession being a dark backdrop for many countries.
The UK’s FTSE 100 rose 0.1% to 5,893.80 as a four-week lockout began on Thursday in England, which would close all shops selling non-essential items, such as books and clothing. Scotland, Wales and Northern Ireland have also announced extensive restrictions on economic activity.
The Bank of England increased its monetary stimulus by an estimated 150 billion pounds ($ 195 billion), to help the economy with new lockdown measures. But as expected, it maintained its benchmark interest rate at ultra-low 0.1%.
In Paris, the CAC 40 rose 1% to 4,969.79, while Germany’s DAX also rose 1% to 12,449.54.
It grew 1.4% in the future for the S&P 500 and 1% in the future for the Dow industry.
Thursday’s rallies delivered a strong overnight performance on Wall Street, where the S&P 500 rose 2.2% for its best day in five months. Nasdaq made its biggest profit in more than six months as traders doubled down on technology stocks that are immune to pandemic shocks that bring more and more activity online.
In Asia on Thursday, Hong Kong’s Hang Seng rose 3.3% to 25,695.92 while Tokyo’s Nikkei 225 index rose 1.7% to 24,105.28. South Korea’s Kospi jumped 2.4% to 2,413.79. In Australia, the S&P / ASX 200 rose 1.3% to the 6,139.60 mark. The Shanghai Composite Index rose 1.3% to 3,320.13.
Shares also rose in Taiwan and Southeast Asia.
Indonesia’s stock benchmark rose 3% in the last quarter after the country was in recession for the first time in two decades. The economy, South-East Asia’s largest, contracted at a 3.49% annual rate in July-September, although it was a contraction improvement of 5.3% in the previous quarter.
Looking ahead, continued Republican control of the US Senate could further intensify an agreement on a fresh infusion of aid to the economy following the end of the first package of stimulus measures in July. Pressure may increase on Federal Reserve To do even more on its own to support the economy, which may send the dollar lower against the euro and other currencies.
The Fed is meeting this week and was due to announce its latest decision on the interest rate policy on Thursday. But there may be a moratorium on determining how to expand its economic support until the final election result is confirmed.
In other trading:
US benchmark crude oil plunged 31 cents to $ 38.84 per barrel on the New York Mercantile Exchange. Overnight, it peaked at $ 1.49 to $ 39.15 a barrel. Internationally, Brent crude gained 27 cents to drop to $ 40.96 a barrel.
The US dollar rose to 104.27 yen from 104.26 yen. The euro strengthened from $ 1.1736 to $ 1.1782.