Mr. Biden’s win is good news for financial markets
After 4 days of suspense waiting for the results, investors and financiers finally breathed a sigh of relief when Democratic candidate Joe Biden was the winner of the race for the White House.
|People gather at Times Square in New York, USA, on November 7. Photo: THX / TTXVN|
According to Reuters, although incumbent President Donald Trump continues to delineate the results of the election in court, but Wall Street leaders suspect he will succeed with that.
“Mr. Biden’s win is good news for the markets. We are tired of the news volatility these days, ”said Christopher Stanton, chief investment officer at Sunrise Capital Partners, on November 7.
This week, a series of major US stock indices recorded the biggest weekly gains since April, when investors wagered Mr. Biden would win and Republicans would control the Senate. The scenario, investors said, would create a stronger position in the Oval Office and Congress capable of controlling changes in taxes or regulations.
However, analysts predict there are still price risks in the coming days and weeks.
Republicans have filed several lawsuits over the counting of votes and President Trump said his campaign team will file more. Lawsuits can prolong the election process.
Besides legal battles, investors are also worried about the team that will be appointed to become Mr. Biden’s Cabinet.
In the new cabinet, some of the officials will be in charge of negotiating with Congress on a bailout package and gain more authority in building Wall Street rules and regulations.
Ms. Lael Brainard, senior official of the US Federal Reserve Bank (FED) and former adviser at McKinsey – is said to be the brightest candidate to target the position of finance minister. Meanwhile, Mr. Biden also contacted Goldman Sachs Group Bank Director Gary Gensler for further advice on financial regulations.
At the moment, investors and Wall Street celebrities say they are pleased with the election finally calling out the winners after days of endless stress.
“Now is the time to unite. We must respect the outcome of the US presidential election and, as we have done with every election, respect the voter’s decision and support the transition process. power peacefully, “said Jamie Dimon, CEO of JPMorgan.
Leon Cooperman, a billionaire, former hedge fund manager who has previously criticized Democrats – says he is pleased with the results. “It is a signal to the world that America is not changing its values. That’s good news from my point of view.
“I am very pleased, relieved and extremely hopeful for the future of this country,” said Robert Wolf, a major Democratic Party sponsor and former CEO of UBS Group AG.
2020 is a difficult year for America. So far, the COVID-19 pandemic has claimed the lives of at least 236,000 people in the country, while unrest related to the murder of black citizen George Floyd has only increased add a long-standing division.
Mohamed El-Erian, Chief Economist of Allianz Group, said he hopes the administration under Biden can work with Congress to deal with the pandemic and adopt an economic stimulus package to support those who Americans are in trouble. “The country needs solidarity and cooperation to cope with the rise of new COVID-19 cases, thereby healing the economic, institutional and social wounds”.