December 2, 2020

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Stocks Jump to All-Time High on Biden Optimism: Markets Wrap

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(Bloomberg) — Wall Street is celebrating the prospect of a U.S. presidency under Joe Biden.

A global rally swept across stock markets on Monday, lifting the MSCI World Index to a record high. Gains stretched from commodities to emerging markets, with investors still buoyant over a possible split in Congress, which could spell legislative deadlock, or simply relieved that the election process has come to an end.

Some of the strongest gains were in technology stocks, with futures on the Nasdaq 100 index were up 1.8%. S&P 500 contracts added 1.5% and all of the industry groups in the Europe Stoxx 600 Index turned green.

“For stocks, this is likely the best of both worlds,” said Joyce Chang, chair of global research at JPMorgan Securities. “A GOP senate majority should ensure that Trump’s pro-business policies stay intact. Under Biden, additional tariffs that fueled the trade war are unlikely to materialize.”

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.

Treasuries were steady and the dollar stabilized. Recent weakness in the greenback has boosted commodities, pushing oil and gold prices higher. The yield on Greece’s two-year bond fell below zero for the first time.

In Turkey, the lira surged the most since March 2019. Over the weekend, the country’s central bank governor was fired and the economy czar resigned, raising speculation over whether the country could shift to more orthodox policies and raise interest rates. The lira, the worst performer in emerging markets this year, gained as much as 4.1% against the dollar.

These are some key events coming up:

Brexit trade-deal talks between the U.K. and EU continue in London Monday Tuesday is the EU’s target date for triggering tariffs on as much as $4 billion of U.S. goods in retaliation over illegal aid to Boeing Co.Alibaba holds its annual Singles’ Day on Wednesday, an online global shopping phenomenon that had $38 billion of sales last yearECB President Christine Lagarde, BOE Governor Andrew Bailey and Fed Chair Jerome Powell are among the speakers Thursday at an online ECB Forum entitled “Central Banks in a Shifting World”Finance ministers and central bankers from the Group of 20 hold an extraordinary meeting Friday to discuss bolder action to help poor nations struggling to repay their debts.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index increased 1.2% as of 9:37 a.m. London time.The Stoxx Europe 600 Index climbed 1.5%.The MSCI Asia Pacific Index rose 1.3%.The MSCI Emerging Market Index gained 1.2%.

Currencies

The Bloomberg Dollar Spot Index decreased 0.2% to 1,148.68.The euro rose 0.2% to $1.1881.The British pound gained 0.1% to $1.3132.The Japanese yen weakened 0.1% to 103.68 per dollar.

Bonds

The yield on 10-year Treasuries declined less than one basis point to 0.80%.The yield on two-year Treasuries declined less than one basis point to 0.15%.Germany’s 10-year yield fell one basis point to -0.64%.Britain’s 10-year yield decreased one basis point to 0.241%.

Commodities

West Texas Intermediate crude gained 1.5% to $38.01 a barrel.Gold strengthened 0.3% to $1,958.91 an ounce.

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2020-11-09 04:38:53


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