Global markets Come Together In Response!
Donald Trump has yet to concede and Mr Biden’s win remains a projection as key states are still counting votes.
However, the Democrat is forging ahead with his plans for assuming power in January after major US networks called the election in his favor on Saturday.
The end of uncertainty about the race’s outcome saw London’s FTSE 100 rise 1.5% to 5,994.58 points in early trade, with similar gains seen across Europe.
Asian shares also jumped, with Japan’s Nikkei 225 climbing 2.1% to 24,839.84 – it’s highest level since 1991.
There were similar gains in Australia,
China and Hong Kong while oil and currency markets also climbed.
In China, the main shares benchmark – the Shanghai Composite –
rose almost 2% on Monday,
as investors viewed the Biden win as positive for trade and technology policy.
Relations between Donald Trump and China deteriorated during his four-year tenure, sparking a tariff war in 2018 that imposed taxes on imported goods from both countries.
“The market is taking the Biden win as a positive, as he is not very likely to fight a new trade war with China.
The chance for a new tech war is also drifting lower,” said Larry Hu, head of China economics at Macquarie bank.
Trump Versus Biden
Bruce Pang, an economist at Hong-Kong based China Renaissance, agreed:
“We think the Chinese authorities might be betting on a less confrontational
but more predictable Biden administration that they can work with.”
Mr Biden has already said he will reverse many Trump era policies,
including rejoining the Paris Climate agreement on his first day in office in January.
There are also hopes that the new administration will expand fiscal stimulus in the US and widen measures to reduce the spread of Covid-19.