Markets around the world are buzzing as Trump leaves the White House, paving the way for President-elect Joe Biden to take over in this evening’s long-awaited inauguration ceremony.
After days of subdued activity across global equities earlier in the week – partly hampered by the US’s national holiday in commemoration of Martin Luther King – it appears that all the pent-up excitement surrounding Biden’s big day has finally caught up.
The NASDAQ (INDEXNASDAQ:.IXIC) climbed to an all-time high – nudged by Netflix’s shares surging 13% – with the index currently up +1.76% to 13,429.33 points (GMT 15:49). The Dow Jones (INDEXDJX:.DJI) similarly enjoyed a +236.79 point surge to 31,167.31 (GMT 15:50), while the S&P 500 (INDEXSP:.INX) is basking in +1.12% increase to 3,841.46 points (GMT 15:51).
Catching the optimism from across the pond, European indices have also shrugged off their apprehension, with the DAX (INDEXDB:DAX) up +0.76% to 13,920.25 points (GMT 15:56) and the CAC (INDEXEURO:PX1) up +0.54% to 5,628.67 (GMT 15:57).
On the other hand, the FTSE (INDEXFTSE:UKX) evidently wasn’t feeling the same kind of jubilance. While contemplating a 3-year high from the pound following a better-than-forecast inflation reading, the blue chip index’s growth capped at just 0.31% (GMT 15:58).
Commenting on today’s near-synchronous market sentiment, Spreadex financial analyst Connor Campbell weighed in:
“Now that the Biden administration is a few hours way from being sworn in, investors seem more willing to look to the future. Most pressingly that includes a coherent effort to tackle coronavirus on both a fiscal and medical level – something wholly absent for a long time – alongside spending on green tech and, potentially, less fraught international relations between the States and the rest of the world”.
However, with Biden’s inauguration only just beginning and the sun rising on the new Democratic administration, the markets might need a bit longer to settle on a wholly coordinated response – perhaps, this time, with the FTSE in tow.
“The day isn’t over yet,” Campbell added, “And any trouble around the inauguration will come to weigh on the markets. However, it is the start of a new period in America, one that will hopefully help expedite the end of our current nightmare”.