Stocks rise to record high on Biden presidency optimism

Bloomberg

Global equities rallied to a record high amid optimism about the outlook under a Joe Biden presidency. The dollar extended declines.
Last week’s embrace of risk continued on Monday after Biden was declared the winner of the US election over the weekend. S&P 500 futures rise about 1.5%, building on the strongest week since April for the benchmark, as the president-elect launched his transition effort. Contracts on the tech-heavy Nasdaq 100 index, which have outperformed since Tuesday’s vote, were up more than 2%.
Gains were broad-based in Asia and European stocks opened higher. The yuan and euro rises alongside the Australian and New Zealand dollars. Treasuries were steady and oil pared some of Friday’s slide.
Biden in his victory speech promised swift action against the pandemic and an orderly transfer of power, though President Donald Trump is weighing legal challenges and has so far refused to concede. As of Sunday there was a growing sense among Trump’s allies that he’d lost.
“A GOP senate majority should ensure that Trump’s pro-business policies stay intact,” said Joyce Chang, chair of global research at JPMorgan Securities. “For stocks, this is likely the best of both worlds.”
The MSCI All-Country World Index rises as much as 0.6 percent to 596.21, surpassing the intraday high of 595.24 set on September 3.
With the US election at an end, investor focus will likely return to the global economic recovery. That remains under threat from the resurgent coronavirus, with worldwide cases of Covid-19 surpassing 50 million.
The US reported more than 100,000 new infections for a fourth consecutive day. Total US cases neared 10 million with no slowdown in sight. Japan is facing rising infections in the northern island of Hokkaido.
China remains a relative bright spot, with trade data over the weekend showing Asia’s largest economy is
continuing to recover.
Meanwhile, Alibaba is holding its annual Singles’ Day on Wednesday, an online global shopping phenomenon that had $38 billion of sales last year.
Finance ministers and central bankers from the Group of 20 will hold an extraordinary meeting on Friday to discuss bolder action to help poor nations struggling to repay their debts.
Futures on the S&P 500 Index increased 1.2% as of 8:07 am London time and the Stoxx Europe 600 Index climbed 1.5%.
While the MSCI Asia Pacific Index rises 1.3%, the MSCI Emerging Market Index gained 1.2%.
The Bloomberg Dollar Spot Index decreased 0.2% to 1,147.79 and the euro surges to 0.2% to $1.189.
While the British pound gained 0.1% to $1.3176, the Japanese yen weakened 0.1% to 103.49 per dollar.
The yield on 10-year Treasuries declined less than one basis point to 0.82% and the yield on two-year Treasuries declined less than one basis point to 0.15%.
While Germany’s 10-year yield fall one basis point to -0.63%, Britain’s 10-year yield decreased one basis point to 0.262%.
West Texas Intermediate crude gained 1.5% to $38.08 a barrel and gold strengthened 0.3% to $1,958.17 an ounce.