Stock exchange prices in Europe rise significantly after Biden victory. Last week, the Dax rose by a total of eight percent after the US election. With Joe Biden’s victory certain, investors are now continuing to buy stocks vigorously.
Stock exchange prices in Europe rise significantly after Biden victory
Joe Biden’s victory in the US presidential election caused share prices to rise sharply on Europe’s stock exchanges. The German leading index Dax rose by 1.7 percent to 12,697 points at the start of trading. On the London Stock Exchange, the FTSE 100 rose 1.5 percent to 5997 points; France’s leading index CAC 40 also climbed 1.5 percent – to 5032 points.
In the morning, the most important stock indices in Asia had already gained significantly. The Chinese benchmark index Shanghai Composite rose on Monday by almost 1.9 percent to 3374 points, in Shenzhen the increase was almost 2.3 percent. The Hang Seng Index in Hong Kong was still up just under 1.2 percent at the close of trading.
The index of the 225 largest Japanese companies, the Nikkei 225, rose by 2.21 percent to 24,839.84 points by close of trading in Tokyo – that was the highest level since 1991. In Tokyo, prices were almost six percent lower in the previous week climbed up.
“Risk of a protracted electoral process evaporated”
The Dax had also risen sharply last week – by a total of eight percent – and, despite all the remaining uncertainties in the course of the US election, recovered almost completely from its recent corona-related losses.
The dealers on Monday especially welcomed the certainty about the election result – even if this is still being questioned by the defeated incumbent Donald Trump. “At least the risk of a protracted election process has evaporated,” said analyst Shoji Hirakawa from the Tokai Tokyo Research Institute. Four days after the election, the US media announced Biden’s victory over Trump on Saturday.
With the victory of the Democrats, uncertainty will disappear, said market strategist Stephen Innes of broker Axi. The fluctuations should now subside noticeably. Together with the support measures taken by the central banks to cushion the negative economic consequences of the corona pandemic, prices could initially continue to rise even after the election.