NEW YORK (dpa-AFX) – With clear political conditions in mind, investors in the US stock market are likely to push prices up further on Thursday. The broker IG valued the US leading index Dow Jones Industrial just under an hour before the start 0.38 percent higher at 30,946 points. The technology-heavy Nasdaq 100, which had lost a lot the day before, is also expected to recover.
Now that the US Democrats have also won Senate sovereignty, President-elect Joe Biden can now more easily implement and govern his political agenda, which is likely to provide for even more extensive economic aid with high investments in infrastructure. Investors therefore focused on the opportunities that Bidens’ agenda promises. Stephen Innes, market strategist at the broker Axi, explained that the economic prospects for the USA are decisive for them and should brighten in the next few months.
In the meantime, the two chambers of congress have officially certified Biden’s victory in the presidential election after angry Trump supporters had temporarily plunged the political center of the USA into unprecedented chaos with the storming of the Capitol the previous day and thus caused serious damage to American democracy.
With the confirmation of the Biden election victory and the orderly transfer of power announced by Donald Trump, uncertainty will now be taken out of the markets and hopefully a line will be drawn under the last four years with Trump as President of the USA, wrote analyst Neil Wilson of Markets.com.
Analyst Jochen Stanzl noted that possible tax reforms under Biden could well damage corporate profits and thus the overheated share prices. “However, these risks should be compensated for by the long-term ultra-low interest rates, which will keep stocks more attractive compared to fixed-income investments and which should further cloud investors’ view of the risks.”
On the penultimate trading day of the first week of the stock exchange, Walgreens Boots Alliance are in view with quarterly figures. The pharmacy chain exceeded expectations, which brought the papers a pre-market plus of 2.7 percent. The Bad Bath and Beyond stocks went in the opposite direction, with a pre-listing minus almost 14 percent. The retailer, which specializes in bathrooms and kitchens, disappointed investors with its latest figures. The semiconductor company Micron Technology then presents its figures.
An upgrade from “Neutral” to “Overweight” by JPMorgan gave the shares of Mosaic pre-IPO boost by 3.4 percent. The fertilizer company appears to be the most favorably valued company in the agricultural sector, wrote analyst Jeffrey Zekauskas in his latest study, and has significantly increased its earnings forecasts for 2020 and 2021./ajx/jha/
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