The world’s eyes are currently on the United States presidential election. Investors had previously come out with predictions on the global stocks post-election. However, the end of the war is still unpredictable with how the situation is turning out. Election Day has also evidently affected stocks all around the world.
Investors anticipate the U.S. presidential election result
According to CNN, investors have their bets on Joe Biden. However, the situation is turning awry with Donald Trump insisting on winning the election while accusing the election is contaminated with fraud.
With the current situation, chief international economists James Knightley told CNN Business that the markets might be shaky for the upcoming weeks. CNN continued that riskier assets like stocks will most probably advance with a rally regardless of who the winner of the election is.
A lot of investors are currently anticipating which political party will win the majority of the seats. Democrats’ win is expected to bring bigger fiscal stimulus. Accordingly, investors are hoping for lawmakers to approve additional relief soon after the election.
Stocks on Election Day
Election Day is pulling the US stocks higher during the regular trading hours. CNN noted a 2.1% jump in the Dow by the end of the trade, the best gain recorded since mid-July. The S&P also ended 1.8% incline, while the Nasdaq Composite closed with 1.9% higher, a peak after last mid-October.
In consequence, stocks in Asia markets recorded a generally higher result by the end of the day. Chinese indexes are still on mute as an aftereffect of the world’s largest IPO, Ant Group. Japan’s Nikkei 2225 (N225) and South Korea’s Kospi (KOSPI) recorded a 1.7% and 0.6% incline respectively. The Shanghai Composite (COMP) also grew by 0.2%. However, Hong Kong’s Hang Seng noted a 0.2% decline.