Joe Biden has the White House within reach, and stock markets are responding by strengthening virtually all over the world. At the same time, Democrats are unlikely to win a majority in the US Senate. That’s what investors like.
The Dow Jones and S&P 500 rose about 1.7 percent on Thursday. The Nasdaq technology index’s rise even exceeded 2 percent. US stocks are experiencing another rally after confusion over the outcome of the presidential election slowly erstightened. Moreover, investors like the fact that Democrats will not have a majority in the US Senate. “If Republicans hold the Senate, it doesn’t really matter who gets the president,” analysts told Reuters.
The combination of a Democrat in the White House and a de facto domination of Congress by Republicans ensures that Joe Biden, as president, could not move significantly at the helm of American economic policy anyway. In response to Wednesday’s developments on the US stock exchange, exchanges in Asia and Europe also reacted positively on Thursday. Its main markets strengthened between 1.3 (Shanghai) and 3.3 percent (Hong Kong), with gains in Europe most often hovering around 2 percent.
