Even if Joe Biden wins, which is the most likely scenario as of now, the hold of the Senate may remain with the Democrats. Investors hope that this would not lead to major tax increases or the regulatory changes that Biden wanted to implement. Tech and health-care firms’ shares have gone up globally.
The Stoxx Europe 600 surged 1% as tech shares went up supported by positive corporate results. Societe Generale SA leaped as its quarterly profits nearly doubled their estimates while Qualcomm Inc. increased as demand for 5G devices went up.
Facebook went up 8.3%, Amazon and Alphabet both shot up 6% while Apple and Netflix increased 4% and 2% respectively.
For the U.S markets, futures rose sharply early Thursday. The Nasdaq 100, tied to tech shares, saw a hike of 2.8%, the S&P climbed 2.2%, and Dow Jones added more than 350 points. On the other hand, the probability of getting the much-awaited fiscal stimulus lowered owing to a divided Congress that led to Treasuries going higher and the dollar falling on Thursday.
The Bloomberg dollar index declined by 0.6% while other curries jumped. The euro climbed 0.7 % to $1.181 and the British pound hiked 0.6% to $1.3072. The onshore yuan and the Japanese yen surged 0.6% and 0.3% respectively.
As for the treasury yields, the 10-year Treasury fell to 0.74%, the two-year treasury remained unchanged at 0.14%. Germany’s treasury yield dropped to -0.64% while Britain’s 10-year yield increased to 0.216%. Japan’s 10-year yield also sank by two basis points to 0.022%.
Investors are hoping that with a split Congress, the precious tax policies would remain unchanged and the tech sector would be subjected to lighter regulation. Even though this would narrow down the chances of getting a fiscal stimulus, traders will expect hostile action from the Fed to feed in money into a coronavirus-stricken economy.
In the light of recent events, Bitcoin more than doubled for the first time in 2020, going from $550 to $14,570.
With Joe Biden so close to victory, the possibility of a contested election still exists which could lead to a short-term fall in stocks, according to some strategists.
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
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