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European stocks, Dow futures rose after Biden declared victory



People watch a TV news program reporting the US presidential election showing US President-elect Joe Biden, at a station in Seoul on November 9, 2020.

jung yeon-je / Agence France-Presse / Getty Images

European and US equities futures rose on Monday after former Vice President Joe Biden declared victory, ending the streak of uncertain days.

Up 7% last week, Stoxx Europe 600 SXXP,
+ 1.46%
1.3% increase.

DAX DAX of Germany,
+ 1.80%,
French CAC 40 PX1,
+ 1.55%
and UK FTSE 100 UKX,
+ 1.44%
all are advanced.

Futures based on the Dow Jones YM00 industrial average,
+ 1.26%
increased 342 points and Asian markets also increased.

This is the market’s first chance to react to the news that Biden ranks first among the 270 required votes of the Electoral College, according to articles from the Associated Press and other major media. President Donald Trump does not give in, but has yet to pose a legal challenge that analysts say is likely to succeed. The Biden administration is likely to take place with the Republican-controlled Senate, unless Democrats can win the two upcoming Georgia elections.

Ian Williams, strategist at Peel Hunt, said: “A week ago, the prospect of an indomitable election in the US was viewed with anxiety, but it turned out that the deadlock in Washington was the thing. that investors want, ”said Ian Williams, chief strategist at Peel Hunt.

Analysts say Biden’s victory could also make a trade deal between the European Union and the UK more viable. Paul Hollingsworth, an economist at BNP Paribas said: “After all, Biden’s close association with Ireland means any potential problems stemming from a no-deal Brexit is likely to do. significantly reduced hope for any US-UK free trade agreement ”.

News of the election has eclipsed the latest coronavirus reports. Project COVID-19 says the new US case count is the highest ever on Sunday, as the Central Bank of France says current lockout will reduce operations. 12% below normal.

Economists at Goldman Sachs lowered their estimate for global growth next year to 6%, a decrease of 0.5%. Jan Hatzius and Daan Struyven said: “It is due to the sharp increase in infections in recent weeks, which has left us with a sizable economic impact, if only in the short term, especially in Europe.

Among the stocks on the move, British builder Taylor Wimpey TW,
+ 12.08%
up 9% after saying this year’s results will hit the top of expectations.


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