UK markets open in 7 hours 30 minutes
  • NIKKEI 225

    23,567.04
    -104.09 (-0.44%)
     
  • HANG SENG

    24,569.54
    +27.28 (+0.11%)
     
  • CRUDE OIL

    41.51
    +0.05 (+0.12%)
     
  • GOLD FUTURES

    1,914.70
    -0.70 (-0.04%)
     
  • DOW

    28,308.79
    +113.37 (+0.40%)
     
  • BTC-GBP

    9,206.20
    +666.41 (+7.80%)
     
  • CMC Crypto 200

    239.54
    +0.62 (+0.26%)
     
  • ^IXIC

    11,516.49
    +37.61 (+0.33%)
     
  • ^FTAS

    3,315.73
    +3.96 (+0.12%)
     

Stock markets firmer on hopes for post-election US stimulus

·3-min read
Markets are rising as investors see better chances for a sweep by Joe Biden and Democrats, which would break the political logjam in Washington on a new stimulus package for the US economy
Markets are rising as investors see better chances for a sweep by Joe Biden and Democrats, which would break the political logjam in Washington on a new stimulus package for the US economy

Stock markets were mostly firmer Thursday, with investors increasingly confident Joe Biden and the Democratic Party will win the US presidency and both houses of Congress, paving the way for a huge new coronavirus stimulus package, analysts said.

President Donald Trump's decision to break off talks for a second rescue package gave global traders a massive jolt on Tuesday but his call soon after for targeted help -- including $1,200 handouts for Americans and help for small businesses -- lifted hopes.

In his latest comments Thursday, Trump said there was a "really good chance" of getting a deal with the Democrats.

"The market realises that whoever wins (the election), more than likely Biden now, there is going to be significant stimulus and additional infrastructure spending," said Andy Brenner, head of international fixed income at National Alliance.

The odds on a Biden win are shortening, with opinion polls putting him well ahead nationally and enjoying leads in battleground states such as Florida, where polling website FiveThirtyEight says Trump is losing the crucial senior vote.

A Biden victory and Democrats taking the Senate and House is also being priced into markets, as traders grow increasingly optimistic for a bigger rescue plan than what was being discussed before talks were curtailed Tuesday.

Democrats had initially proposed a stimulus of more than $3 trillion before lowering it.

All three major Wall Street indexes ended with gains of close to two percent Wednesday, with Asia and Europe picking up the baton Thursday.

- Key figures around 1330 GMT -

New York - Dow Jones: UP 0.2 percent at  28,359.33

London - FTSE 100: UP 0.6 percent at 5,984.29 points

Frankfurt - DAX 30: UP 0.8 percent at 13,032.77

Paris - CAC 40: UP 0.6 percent at 4,911.16

EURO STOXX 50: UP 0.6 percent at 3,253.45

Tokyo - Nikkei 225: UP 1.0 percent at 23,647.07 (close)

Hong Kong - Hang Seng: DOWN 0.2 percent at 24,193.35 (close)

Shanghai - Composite: Closed for a holiday

Euro/dollar: DOWN at $1.1743 from $1.1765 at 2100 GMT

Pound/dollar: UP at $1.2919 from $1.2913

Dollar/yen: DOWN at 105.95 yen from 105.96 yen

Euro/pound: DOWN at 90.90 pence from 91.04 pence

West Texas Intermediate: UP 2.6 percent at $41.00 per barrel

Brent North Sea crude: UP 2.6 percent at $43.09 per barrel

bur/bmm/ach