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Factbox: With the declared winner Biden, what’s next for investors



FILE PHOTO: A stock trader tracks stock prices at a stock exchange as the spread of coronavirus (COVID-19) continues to take place in Frankfurt, Germany, October 27, 2020, REUTERS / Kai Pfaffenbach

(Reuters) – With Democrat Joe Biden anticipating victory in the US presidential election by major television networks on Saturday, many investors welcomed good news for the market but warned about The volatility continues.

Republican President Donald Trump, who has repeatedly declared election fraud without providing evidence, immediately accused Biden of “hastily impersonating a winner”

;.

Here’s what the investors said they would focus on next:

* Senate. All eyes are now on two landings scheduled to take place in Georgia in January, which will determine who controls the Senate of Congress. Investors are weighing the impact there will be on the Biden administration’s ability to push through stimulus measures, regulatory changes and any tax hikes.

* Trump’s response. While investors are less and less worried about the huge volatility of US stocks, some have expressed concern over what Trump might do during the lame session before taking office. They say that unpredictable moves can cause volatility in the market.

* Stimulate and Fed. Now, the attention will turn to Biden’s ability to agree to fiscal stimulus and how much more the Federal Reserve can do to support the coronavirus-affected economy. Given the potential prospect of a Republican Senate, expectations for a big stimulus victory were easily removed. What happens there will have implications for the Treasury as well.

* Currency unit. An increasingly bearish picture is playing out against the US dollar, which has had its worst week since March on signs that the Fed printing money instead of government spending could be developed. to boost the economy.

* Technology stocks. High-tech stocks are set to benefit from a potential stalemate as it reduces the chances of investors selling those shares due to concerns about an increase in capital gains tax. However, these shares may see some tax sales ahead of Georgia’s runaway. Other stocks benefited from Biden’s win: solar, cannabis, and infrastructure.

* Biden’s Cabinet. Investors are now looking at the options of the Biden Cabinet to gauge whether he will manage as a business-friendly moderator or push for progressive legislation that could weigh on areas like fortune. key and petroleum but support clean energy.

Synthesized by Megan Davies; Edited by Jonathan Oatis


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