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Home / Business / Stocks higher, the dollar prolonged losses as Biden won According to Reuters

Stocks higher, the dollar prolonged losses as Biden won According to Reuters



© Reuters. FILE PHOTO: A man eats a noodle lunch while watching the stock market price inside a brokerage company in Taipei

By Swati Pandey

SYDNEY (Reuters) – Wall Street securities futures started strong on Monday while the dollar extended its downtrend as risky assets were strengthened by expectations of less regulatory changes and more stimulus Prefer money under US President-elect Joe Biden.

The Democratic candidate̵

7;s victory at the US presidential election is largely priced by markets, which have traded with the views of a Biden president and the Republican-controlled US Senate. last weekend.

E-mini futures for the S&P 500 jumped 0.6% on Monday, signaling a positive start to the US market.

The MSCI’s widest Asia-Pacific stock index outside of Japan edged 0.1 percent, after rising 6.2 percent last week to achieve its best weekly performance since early June.

Chief Financial Officer Jim Wilding at Confluence Financial Partners in Pennsylvania said: “What appears to be divided government at the moment offers more continuity of the current environment than the potential for far-reaching changes. , ”Said Jim Wilding CFO at Confluence Financial Partners in Pennsylvania.

“We see this as a positive thing for the stock market, especially in this scenario, as it puts higher tax rates very low in the coming years,” he added.

Wilding added a warning though with the S&P 500 not far from an all-time high.

“While we are still positive on the medium-term outlook and believe that a divided government reduces the likelihood of a bear scenario, we will curb unrestrained enthusiasm at current levels,” Wilding said. .

Stocks surged last week, with the S&P500 up 7.3%, hitting its best one-week election since 1932, according to National Bank of Australia (OTC 🙂 analyst Tapas Strickland.

However, Matt Sherwood of Australian fund manager Perpetual said Biden’s victory did not necessarily adjust his portfolio.

“Ultimately, we think the US economy is still quite fragile and growth is slowing down,” Sherwood said.

“You may be more likely to attract your portfolio towards higher beta markets, such as emerging markets, and potentially better prospects in the energy space than the case of being wiped out by the Democrats. “

Analysts also warn the path could become tougher from here as investors focus on Biden’s possible fiscal stimulus expansion and measures to reduce the spread of COVID-19.

The United States saw a record number of new coronavirus infections last week, with a total of nearly 10 million cases.

A fiscal stimulus plan is doable despite a divided government, analysts say, although a larger package is less likely. That leaves the US Federal Reserve doing more to boost the world’s largest economy.

As a result, the dollar has weakened in recent days while growth currencies such as the Australian dollar have risen with the Biden presidency seen as less likely to be a trade confrontation.

The dollar was weaker against the Japanese yen at 103.25, after slipping around 1.3 percent last week.

An increase of 0.3%, a 3.3% increase last week.

Investor focus will also be on the pound and euro this week with upcoming UK-EU trade talks with the EU summit on November 15.

Later in the day, the Bank of England chief economist will deliver a speech on ‘The economic impact of coronavirus and the long-term effects for the UK’.

The euro, up 1.9% last week, was slightly higher on Monday at $ 1.1887. Sterling is weaker at $ 1.3146.

That dropped the number by 0.1%.

As for commodities, oil prices rose slightly after Friday’s losses but remained below $ 40 a barrel as global coronavirus infections raised concerns about faint demand.

Gold escalated, with spot prices up 0.36% to 1,958.7 an ounce.




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