Stock exchanges celebrate Biden’s victory with historic highs
European stock exchanges kicked off the week on a sharp rise, with investors celebrating the outcome in the United States elections, even though Donald Trump has not yet recognized Joe Biden’s victory.
The Stoxx600, the main European stock index, is increasing by 1.72% to 372.70 points.
Even before the opening of European markets, the MSCI All-country World Index, one of the main barometers of world exchanges, reached an intraday historic high, benefiting from the sharp gains registered by Asian markets, which were the first to react to Biden’s victory, that was declared on Saturday. According to Bloomberg, the MCSI index for world stock exchanges advances 0.6% to 596.21 points, exceeding the previous historical high of September 3 at 595.24 points
Among European national indices, gains are high and widespread, with the German DAX increasing by more than 2%. The national stock exchange is rising, with the national index PSI-20 to add 1.44% to 4,098.90 points.
According to the American press, the president-elect of the United States is already working on his transition team and analyzing a series of executive orders to reverse some of Trump’s policies, such as the exit from the Paris climate agreement.
In addition to the reduction of uncertainty related to the American elections and the positive vision for Biden’s mandate, the market is also benignly seeing the division of power between the White House and Congress (Republicans should stay with the Senate ), as this can result in moderate political measures in taxes and public spending and make it more difficult to withdraw the tax cuts that were implemented by Trump.
“The market is celebrating more certainty and possibly less volatility with Biden’s victory,” Ken Wong, portfolio manager at Eastspring Investments, told Dow Jones.
Supporting the positive session on the stock markets are also other factors, such as positive economic data in China and favorable results of several listed companies, with emphasis on the German chip maker Infineon.
China’s exports rose 11.4% year on year in October, a reading higher than the 9.9% rise of the previous month and exceeding economists’ projections of a 9.0% gain.
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