Global stocks surge on Biden’s win

Monday morning saw the global stocks jump as investors welcomed the US Presidential election win.

The blue-chip index climbed 94 points, or 1.6%, to 6004 points on Joe Biden and Kamala Harris’ victory over the weekend.

It wasn’t just stocks in London that rose on the back of the news. Japan’s Nikkei stock surged 2% to a 29-year high.

“Financial markets around the world have received a marked boost in the wake of Joe Biden’s victory in the US presidential election, with Japanese shares hitting their highest level for nearly three decades and oil prices also climbing,” said Martin Farrer from The Guardian.

“Stock prices in Europe and New York were also expected to rise sharply on Monday after the president-elect pledged to try to bring unity to the US after four tumultuous years under the Trump administration.

“The Nikkei index in Tokyo led the way with a rise of 2.3% as traders in Asia Pacific got the first chance to give their verdict on the Biden victory declared over the weekend.

“In China, the Shanghai Composite was also up more than 2%, Hong Kong shares rose 1.5% and the ASX200 in Sydney jumped 1.74%,” added Farrer.

In the US,  the DAX and CAC surged 1.9% and 1.8% respectively, crossing 12,700 and 5040.

Susannah Streeter, senior analyst at Hargreaves Lansdown, warned that the gains on the FTSE 100 aren’t expected to last amid Brexit trade deals.

“An incoming Biden administration is certainly not going to offer an easy path to a trade deal between the UK and the US and could even determine the shape of relations between Britain and the EU,” she said.

“Joe Biden has already expressed disapproval of proposals for the UK to potentially break international law on certain aspects of the withdrawal agreement, which is likely to concentrate minds at Number 10.”

 

 

 

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Safiya Bashir
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.