Global Stock Market Prices Surge As Biden Wins America Presidential Election
The Japanese shares in the stock market have smashed a 29-year high record following the confirmation of Joe Biden as the next president of the United States of America.
Joe Biden has been declared the Presidential election winner in the United States of America after a fierce battle with the incumbent president, Donald Trump. Financial markets across the globe have reacted swiftly to the win following the statement from Joe Biden to bring back a unified America. Notably, the Japanese Nikkei touched a 29 year high, a level it last reached in 1991 with the oil price also rising significantly.
Stock prices across the globe witness significant rises
Stock prices in Europe and New York also witnessed considerable rise as the president made his first statement after being elected into office. According to experts, the markets stabilize after a tumultuous four years under the Donald Trump leadership.
The Nikkei index market in Tokyo is currently leading the other global markets after making a surge of about 2.3% as traders in the market got to relive their feelings about the results of the US Presidential election.
Other markets that experienced rapid rises are the Shanghai Composite market in China, which recorded an increase of 2%, and Hong Kong shares witnessed a growth of 15%. The ASX200 shares in Sydney were not left behind as it managed to record a surge of about 1.74%.
Taking a look at Futures trading, one can assume that the FTSE100 would undergo a price surge of about 1.3% in the coming days while the S&P500 is also set to witness a 1.5% gain. Nasdaq was the game changer as it recorded a move above the 2% mark.
Experts worried about the American economy
Giving their review of what the Biden win means, Investors claim that Biden might have a hard nut to crack regarding controlling the senate. This means that Biden will not push through the significant fiscal stimulus, and the federal reserve will continue with its plan to pump cheap cash into the economy.
Spelling what this means, the investors claim that borrowing costs will drastically reduce in the coming weeks. According to Dave Wang, a portfolio manager in Singapore, while people were busy talking about the two famous contenders in the American presidential race, the market was reacting to the American congress’s split.
With the rate at which money flows into the economy, experts are worried about the long-term effects as the US economy relied on the government’s stimulus checks.
Meanwhile, oil prices have allayed fears of a reduction in demand despite increasing coronavirus cases across the globe. According to the latest data, a barrel of crude oil now sells for $40.48, adding $1 across the weekend. It is unknown what Biden’s tenure will spell for the American economy in the long term, but most analysts and investors will be hoping it is a good one.