Wall Street jumps on election news

Wall Street jumps on election news - MarketPulseMarketPulse


Home/COVID-19/Indices/News events/Newsfeed/US election

Share 0

Equity markets boosted by impressive New York session

Wall Street was swept with stimulus-mania overnight, as the Democrats completed a governmental clean sweep, and President Trump promised an orderly transition of power, sending indexes to new all-time highs. The S&P 500 rallied 1.48%, with the Nasdaq leaping 2.48% and the Dow Jones climbing 0.69%. Futures on the main US indexes continue the charge in Asia, moving higher by between 0.35 % and 0.40% today.

New York’s sentiment has swept Asia with some notable exceptions. The Nikkei 225 has jumped 1.65% to multi-decade highs. The Kospi is a massive 2.75% higher, with Hyundai up 24% today after it announced talks with Apple over building an electric car. Taiwan is 1.0% higher, with Singapore rallying by 1.75%.

Mainland China is a notable exception as stock markets have fallen today. The delisting of three China telco giants from US exchanges and some important tracker indexes from the likes of MSCI and others is weighing on mainland stocks. A government order to censor information on the government’s antitrust probe of Alibaba has also eroded sentiment, as is the US’s ongoing action to block several China payment apps. The Shanghai Composite is lower by 0.40%, while the CSI 300 has fallen 0.50%. Hong Kong appears to have shrugged off those woes though, rising 1.25%.

Kuala Lumpur has also fallen today; the KLCI is down 0.35%. Political concerns have reared their ugly heads again, but the leading cause for concern amongst local investors is Malaysia’s spiralling Covid-19 situation and the threats of more lockdowns. Covid-19 weighs on Australian markets as well, with Brisbane entering a three-day lockdown after a community case involving the highly infectious UK variant. The ASX 200 is up just 0.50%, and the All Ordinaries only 0.40%, despite a lower currency and yearly highs in key commodity prices.

European stock markets should take their cue from a very bullish Asia today and move higher. It is clear that the Democrat clean sweep is the primary driver of the equity rally at the moment. Only localised national event risk is causing divergence from the broader rally.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley is OANDA’s senior market analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia and the New York Times. He was born in New Zealand and holds an MBA from the Cass Business School.

Jeffrey Halley

Latest posts by Jeffrey Halley (see all)

Original author: Jeffrey Halley


© MarketPulse

Oil steady, gold holding at USD 1900
US yields boost the dollar

By accepting you will be accessing a service provided by a third-party external to https://chatpips.com/


Broker Search

Latest Spot Rate

19 January 2021
Key risk events today: Limited. (Previous analysis as well as outside sources – italics). EUR/USD: Holiday-thinned liquidity witnessed narrow trading on Monday, despite shaking hands with H4 demand (green) at 1.2040-1.2064 and connecting 38.2% Fibona...
19 January 2021
Canadian dollar dips on mixed data - MarketPulseMarketPulse Home/FX/Newsfeed Share 0 The Canadian dollar is down slightly in the Monday session. Currently, USD/CAD is trading at 1.2759, up 0.22% on the day. Short squeeze boosts US dollar The week end...
19 January 2021

19 January 2021
Aussie dips below 0.77 line - MarketPulseMarketPulse Home/Central banks/COVID-19/FX/News events/Newsfeed/Technical analysis Share 0 The Australian dollar has started the new trading week with slight losses. AUD/USD is currently trading at 0.7681, dow...
18 January 2021
Quiet start to the week - MarketPulseMarketPulse Home/Central banks/COVID-19/News events/Newsfeed/Treasuries Share 0 A quiet start to the week, with the US bank holiday meaning trading is likely to remain extremely thin throughout the session. Europe...
How It Works | About | Contact | Contributors | Privacy Policy | Advertise
© 2009 - 2021 ChatPips. All Rights Reserved. Terms of Use: The content on this website is solely for educational and informational purposes and is not a substitute for official documentation of the original owners. Daily economic news is provided by third-party website. This site is not operated by, sponsored by, endorsed by, or affiliated with any parties in any way. The website owner, the authors, the publishers, and all affiliates of ChatPips.com assume no responsibility or liability for your trading and investment results. You should always check and confirm with several sources with your licensed financial advisor and tax advisor to determine the suitability of any investment before making your final decision. Your continued usage and browsing of information on this website constitute your agreement to this Terms of Use. If you do not agree, please do not proceed to use this website. Brokers Directory: The companies license information were obtained from respective local jurisdiction. All other company and/or product names are trademarks and/or registered trademarks of their respective owners.