The exchanges celebrate Biden’s victory with all-time highs. Oil goes up and interest rates go down – Markets in a minute

The stock exchanges celebrate Biden’s victory with all-time highs

European stocks kicked off the week with a sharp spike, with investors celebrating the election result in the US, even though Donald Trump has yet to acknowledge Joe Biden’s victory.

The Stoxx600, the leading European equity index, is up by 1.72% to 372.70 points.

Even before the opening of the European markets, the MSCI All-country World index, one of the main barometers of the world stock exchanges, reached an all-time high intraday, benefiting from the strong gains recorded by the Asian markets, which first reacted to the victory of Biden, which was declared on Saturday. According to Bloomberg, the MCSI index for world stock exchanges advanced 0.6% to 596.21 points, surpassing the previous all-time high of September 3 at 595.24 points

Among the European national indices, the gains are high and widespread, with the German DAX up more than 2%. The national stock market is on the rise, with the national PSI-20 index rising 1.44% to 4,098.90 points.

According to the American press, the US president-elect is already working on his transition team and analyzing a series of executive orders to reverse some of Trump’s policies, such as exiting the Paris climate agreement.

In addition to the reduction in uncertainty related to the US elections and the positive outlook for Biden’s mandate, the market also welcomes the division of powers between the White House and Congress (Republicans should remain in the Senate), as this could lead to moderate political measures. on taxes and government spending and make it harder to pull back Trump’s tax cuts.

“The market is celebrating more certainty and perhaps less volatility with Biden’s victory,” Ken Wong, portfolio manager at Eastspring Investments, told Dow Jones.

Other factors also supported the positive session on the equity markets, such as positive economic data in China and the favorable results of several listed companies, with an emphasis on German chip maker Infineon.

Chinese exports rose 11.4% yoy in October, a reading higher than the previous month’s 9.9% increase and higher than economists’ projections of a 9.0% increase.