Share Market Hails Joe Biden's Win, S&P/ASX 200 Futures up 1.45%

  • November 09, 2020 01:14 PM AEDT
  • Kunal Sawhney
    CEO Kunal Sawhney
    2781 Posts

    Kunal Sawhney is founder & CEO at Kalkine and is a richly experienced and accomplished financial professional with a wealth of knowledge in the Australian Equities Market. Kunal obtained a Master of Business Administration degree from University of T...

Share Market Hails Joe Biden's Win, S&P/ASX 200 Futures up 1.45%

Summary

  • The world markets are cheered by the outcome of Joe Biden’s and Kamala Harris victory.
  • ASX 200 futures is up by 1.45%, with all the sectoral indices following up and trading in green.
  • The US markets are also cheered up by the outcome as Dow Jones futures is up by 1.45% and S&P 500 is up by 1.31%.
  • Other European and Asian markets are also expressing the same mood.
  • Volatility is subsiding with the clear outcome; A-VIX is down by 8.6%, while CBOE VIX was down by 9.8% in Friday’s session.
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The outcome of the US elections is making the headlines for the stock market news for the world. Finally, the Americans have chosen to end the term of current president Donald Trump and elected the Democrat representative, Joe Biden and vice president, Kamla Harris.

The leaders across the world seem to be cheered up by the outcome of the 59th presidential run and have also congratulated both. These names include Borris Johnson from the UK, Angela Market from Germany, Narendra Modi from India, Scott Morrison from Australia, to name a few.

Image Source: © Kalkine Group

Image Source: © Kalkine Group

There are still a couple of states, North Carolina and Georgia which are yet to close their counting. However, Joe Biden has already surpassed the majority 270 electoral votes with current 290 votes.

ASX 200 Futures surges to 9 months high

S&P/ASX 200 futures is on the bright run today and touched a new nine-month high of 6277.5 (as at 11.41 AM AEDT). The futures surged by 1.45% in the early trade with other broader indices following the trend.

The S&P/ASX 20 (ASX: XTL), S&P/ASX 50 (ASX: XFL) and S&P/ASX 100 (ASX: XTO) are all up by 1.28%, 1.38% and 1.47%, respectively. The benchmark small-cap index, S&P/ASX Small Ordinaries (ASX: XSO) is outperforming the market rally by an inch and is up by 1.57%.

While Australian shares touched 8 months high to 6289, the sectoral indices are also surging up through the roof. The S&P/ASX 200 Consumer Discretionary (ASX: XDJ) is up by 1.47%, while S&P/ASX 200 Consumer Staples (ASX: XSJ) is up by 1.58%. Surprisingly, no sectoral index on ASX (as at 11.41 AM AEDT) is trading in the red.

Wall Street also trading in green with the rest of the world

It’s not just the Australian market that is showing the enthusiasm for Joe Biden’s victory, but the Wall Street and other markets are also expressing the similar mood.

The US markets have been rising since a couple of days prior to the elections. As the states started to come out with final votes, the markets only pumped up higher. Currently, the Dow Jones futures is trading at 28530, up by 1.15%, while the broader S&P500 index futures is up by 1.31%, trading at 3546.62.

These gains were posted after a red trading session on Friday amid uncertainties regarding the election outcome as President Donald Trump had already gone ahead with a legal battle against few states for violation of election rules. The judgement had been ruled out for two states by the Supreme court, eliminating the remaining uncertainty.

Other global markets that are cheered up with the election outcome are European markets. DAX of Germany, and FTSE 100 of London are up by 1.29% and 1.05% respectively.

Asian markets like Nikkei 225 of Japan, Hang Seng of Hong Kong and SGX Nifty (replica of Indian Nifty) are all up by 1. 94, 0.33% and 1.46% respectively.

Volatility on the lower side

The volatility across the financial markets has been coming down since the start of the US election voting, showing considerable and strong view for the Joe Bidens’ victory. Now, when the majority votes have been secured by Joe Biden and stock markets predictions have been materialised, the volatility index is continuing its course of action towards the south.

The S&P/ASX 200 VIX or A-VIX, which measures the Australian market’s volatility is down by a massive 8.6%. While, CBOE VIX was down by 9.8% in Friday’s session.

 

 


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