Stocks seen buoyant, dollar likely to extend losses
Stocks are expected to stay buoyant on Monday while the dollar is seen likely to extend its downward trend as Democrat Joe Biden won the U.S. presidential election in a move that analysts say would prop up risk assets.
The outcome was largely priced in by markets, which had been trading with the view of a Biden presidency and a Republican-controlled U.S. Senate late last week.
“This combination, of course, likely means a Biden presidency’s ambitions will be curtailed in a grid-locked political scene with very few landmark legislative changes being enacted by Congress,” said Tapas Strickland, a director of economics and markets at National Australia Bank.
“Nevertheless, that also means less likelihood of regulatory changes, particularly favourable for tech, and tax changes which can be bullish for stocks.”
· Gold gains third day – Hit $1960 as Biden Wins
Marc Chandler, managing director at Bannockburn Global Forex, said that gold broke above a significant downtrend line; however, he added that gold push back to all-time highs remains allusive.
"[Gold is] not quite off-to-the-races and a rechallenge of $2000. First, it must overcome the $1962 area, which is the halfway mark of the decline from the early August record high and then the (61.8%) retracement near $1989.
· Dollar slips as Biden clinches U.S. presidency
The dollar began the week out of favour, as investors welcomed Joe Biden’s election as U.S. president by buying trade-exposed currencies on the expectation of a steadier approach to foreign policy, and as U.S. monetary settings look to be easy for years.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 92.164 following a decline in recent days from levels above 93.1.
· Dow futures rise 350 points after Biden wins presidency as post-election rally continues
Stocks were set to continue their big post-election rally as futures rose in overnight trading on Sunday. The gains came as Democrat Joe Biden defeated incumbent Donald Trump in the U.S. presidential race to become president elect, according to NBC projections.
Futures on the Dow Jones Industrial Average rose 365 points, implying an opening gain of about 350 points on Monday. S&P 500 futures climbed 1.5% and Nasdaq 100 futures rose 2.2%.
· Asia-Pacific stocks rise as investors react to Biden’s presidential election win
Stocks in Asia-Pacific traded higher on Monday morning as investors in the region reacted to Democrat Joe Biden’s defeat of incumbent Donald Trump in the U.S. presidential race, according to NBC projections.
In Japan, the Nikkei 225 gained 1.11% as shares of conglomerate Softbank Group soared about 3%. The Topix index added 0.84%. South Korea’s Kospi also rose 0.9%.
Shares in Australia were also higher, with the S&P/ASX 200 gaining 1.33%.
MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.29% higher.
· Brent crude tops $40 a barrel after Biden clinches U.S. presidency
Oil prices gained more than 2% on Monday, with Brent futures rising above $40 a barrel, after Joe Biden clinched the U.S. presidency and buoyed risk appetite, offsetting worries about impact on fuel demand from the worsening coronavirus pandemic.
Brent crude futures LCOc1 for January climbed 82 cents, or 2.1%, to $40.27 a barrel by 0101 GMT, while U.S. West Texas Intermediate crude CLc1 for December was at $37.98 a barrel, up 84 cents, or 2.3%.
Reference: CNBC, Reuters, Kitco
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