Democrat Joe Biden wins US elections claiming 270 electoral college votes on Saturday, while Republican appear to have retained control of the Senate with a final runoff votes due in Georgia in January. At the same time Corona Virus shows no signs of slow down with worldwide infections surpassing 50 Million. In Europe the 15th of November deadline for the Brexit deal is getting closer with the major differences over rules for business and fishing remaining unsolved. US added 638,000 jobs in October above the consensus and unemployment rate fell to 6.9% from 7.9% in jobs report this Friday.
Although Trump has not conceded so far, he will find it difficult to overturn the results with his unproven allegations. Republicans may still retain the control of Senate, which would make it difficult for Biden to introduce major spending increases in healthcare, education and infrastructure. A fiscal stimulus plan is still possible despite a divided government, though a larger package is less likely. At the same time the number of infections ins US rose past 10 Million cases. E-mini futures for the S&P 500 jumped more than 1.5% on Monday while Nasdaq futures rallied over 2%, signalling a positive start for U.S. markets.
European stocks and Dow futures Rally after Biden declares the victory. MSCI World index is trading at the record highs. Stoxx Europe 600 SXXP gained 1.54%, Dax is up1.9%, FTSE is trading 1.51% higher. Despite of the positive start of this week, Corona virus cases remain high in Europe and negotiations on Brexit are still in limbo with 15th of November deadline drawing closer. Bank of England Governor Andrew Bailey and chief economist Andy Haldane are due to speak later in the day, with the focus remaining squarely on negative rates.
Asian market also opened on a positive note with Nikkei 225 trading 2.12% higher, Hang Seng 1.18% higher, Asia Dow 1.76% higher. Asian currencies are breaking the historic ranges with USDJPY slipping to 103.42.
US oil futures are higher on general market optimism and are trading around $38 a barrel, while gold rose 0.4% to $1,958 and remains on course for its biggest weekly gain since July.
Russia for the first time reported more than 20,000 Covid-19 cases in the last week as a surge in some regions is overwhelming local hospitals’ ability to care for patients. Longer-term Russia government Eurobonds securities declined in Friday afternoon trading. The 30-year yield rose 3.3bps to 3.271%. Elsewhere the European Union has slapped sanctions on Belarusian President Alexander Lukashenko, along with 14 other officials, for repression of the pro-democracy movement following August’s contested election.