(Bloomberg) — Global equities rallied to a record high amid optimism about the outlook under a Joe Biden presidency. The dollar extended declines.
Last week’s embrace of risk continued Monday after Biden was declared the winner of the U.S. election over the weekend. S&P 500 futures rose about 1.5%, building on the strongest week since April for the benchmark, as the president-elect launched his transition effort. Contracts on the tech-heavy Nasdaq 100 index, which have outperformed since Tuesday’s vote, were up more than 2%.
Gains were broad-based in Asia and European stocks opened higher. The yuan and euro rose alongside the Australian and New Zealand dollars. Treasuries were steady and oil pared some of Friday’s slide. Turkey’s lira surged after the installment of a new central bank chief.
Biden in his victory speech promised swift action against the pandemic and an orderly transfer of power, though President Donald Trump is weighing legal challenges and has so far refused to concede. As of Sunday there was a growing sense among Trump’s allies that he’d lost.
“A GOP senate majority should ensure that Trump’s pro-business policies stay intact,” said Joyce Chang, chair of global research at JPMorgan Securities. “For stocks, this is likely the best of both worlds.”
The MSCI All-Country World Index rose as much as 0.6% to 596.21 on Monday, surpassing the intraday high of 595.24 set Sept. 3.
With the U.S. election at an end, investor focus will likely return to the global economic recovery. That remains under threat from the resurgent coronavirus, with worldwide cases of Covid-19 surpassing 50 million.
The U.S. reported more than 100,000 new infections for a fourth consecutive day. Total U.S. cases neared 10 million with no slowdown in sight. Japan is facing rising infections in the northern island of Hokkaido.
China remains a relative bright spot, with trade data over the weekend showing Asia’s largest economy is continuing to recover.
These are some key events coming up:
Brexit trade-deal talks between the U.K. and EU continue in London Monday with several tricky sticking points remainingTuesday is the EU’s target date for triggering tariffs on as much as $4 billion of U.S. goods in retaliation over illegal aid to Boeing Co.Alibaba holds its annual Singles’ Day on Wednesday, an online global shopping phenomenon that had $38 billion of sales last yearECB President Christine Lagarde, BOE Governor Andrew Bailey and Fed Chair Jerome Powell are among the speakers Thursday at an online ECB Forum entitled “Central Banks in a Shifting World”Finance ministers and central bankers from the Group of 20 hold an extraordinary meeting Friday to discuss bolder action to help poor nations struggling to repay their debts.
These are the main moves in markets:
Stocks
Futures on the S&P 500 Index increased 1.2% as of 8:07 a.m. London time.The Stoxx Europe 600 Index climbed 1.5%.The MSCI Asia Pacific Index rose 1.3%.The MSCI Emerging Market Index gained 1.2%.
Currencies
The Bloomberg Dollar Spot Index decreased 0.2% to 1,147.79.The euro rose 0.2% to $1.189.The British pound gained 0.1% to $1.3176.The Japanese yen weakened 0.1% to 103.49 per dollar.
Bonds
The yield on 10-year Treasuries declined less than one basis point to 0.82%.The yield on two-year Treasuries declined less than one basis point to 0.15%.Germany’s 10-year yield fell one basis point to -0.63%.Britain’s 10-year yield decreased one basis point to 0.262%.
Commodities
West Texas Intermediate crude gained 1.5% to $38.08 a barrel.Gold strengthened 0.3% to $1,958.17 an ounce.
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