Equities around the world rose on ‘Super Thursday’ as a slew of major companies posted festive trade updates, and anticipation continues to mount for the announcement of President-elect Joe Biden’s stimulus package.
With inauguration day fast approaching, it is expected that the new administration is ready to implement the multi-trillion dollar package passed by the House of Representatives towards the end of 2020 as well as a pledge of $1,400 stimulus checks to take the $600 payments approved by Trump’s team before Christmas up to a total of $2,000.
Global equities are broadly trekking upwards, as the Dow Jones (INDEXDJX:.DJI) looks to be on track for a record close after climbing 128 points on Thursday – floating near 31,200 – and the DAX (INDEXDB:DAX) and the CAC (INDEXEURO:PX1) both up 0.55% and 0.47% respectively.
The FTSE (INDEXFTSE:UKX) is also up a modest 0.71% to 6793.50 points as of GMT 15:36, buoyed by the news that the pound is set to close at its best price against the euro since early June.
Commenting on how equities are behaving across the pond, Spreadex‘s financial analyst Connor Campbell said:
“Hopefully not setting themselves up for disappointment, the Western markets rose on Thursday in anticipation of Joe Biden’s stimulus package announcement.
“We are now less than a week away from inauguration day. And though Donald Trump continues to eat up airtime despite the clock rapidly running out on his particularly grim chapter of modern American politics, the incoming administration is ready to go on the fiscal offensive from Day 1.
“Most relevant to the markets is size and scope of the relief plan the Democrats put together. It is likely Biden and co. will return to the multi-trillion dollar package passed by the House of Representatives in the latter portion of last year – if not the full $2.2 trillion sum – as well as an additional commitment to a round of $1,400 stimulus checks to compliment the paltry $600 payments approved pre-Christmas.
“The Democrats have the Senate and the House. But their control of the former is mighty slim, so this, more so than the impeachment process, will be the first real test of their ability to get things done over the new few years. That slight hesitance explains why the Dow Jones is warm rather than red hot. Flirting with 31,200, the Dow climbed 125 points, and could well be on track for another record close if Biden delivers”.
“It is a rare sight to see the FTSE rising 0.6%,” Campbell adds, “as sterling takes 0.5% off its single currency rival and 0.2% off the greenback. As the UK index approaches 6,800 – a better reaction to Tesco’s latest figures could’ve given it the extra oomph it needs to hit that level – the pound is preparing to close at its best price since early June against the euro”.