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Summary
- Stage set for Joe Biden’s swearing-in as the 46th US President on Wednesday
- Health, energy, and technology stocks may see a major boost
- Energy firms anxious over fate of Keystone project
As Joe Biden is set to be sworn-in as the 46th President of the United States on Wednesday, global markets are closely following the political developments in Washington. Although he had revealed some of his plans in the run-up to the elections, he is expected to officially restate them in a series of key policy announcements in the weeks after the inauguration.
Biden has announced a US$1.5 trillion relief package to boost the economy and combat the COVID-19 pandemic. He is also likely to push for green technologies such as EVs and renewables, enhanced capacity for vaccine production, and digital-based services, among others. It could contribute to significant value addition to related stocks in the markets globally.
Additionally, Biden has pledged to bring the US back into the Paris Climate deal, cut US emissions, and promote green development. His impending presidency has already boosted the markets in some segments, such as health, technology, and renewables. But not all players in the economy are happy with his plans. Biden’s proclamation to scrap the mega Canada-US Keystone oil pipeline project on environmental grounds has dampened the spirits of the energy firms on both sides.
Although the US is Canada’s largest trading partner, Trump’s decision to hike the tariffs on Canadian steel and aluminium products have not gone down well with the Justin Trudeau government. He had imposed the additional tariffs citing national security. However, he had revoked a previous blockade by the Obama administration on the Keystone project. Besides, Biden is likely to cancel the executive orders passed by the Trump administration on emigration, which was an emotive issue during the elections. Hundreds of immigrants, mainly from Mexico and other South American nations, were locked-up or deported during a crackdown. Biden has promised to probe the issue.
President Trump, who marks the last day in office on Tuesday, lost the elections by more than 150,000 votes against Biden, in a closely contested poll that was also the most controversial in US history. His running mate Kamala Harris will take oath as the 49th Vice President of the United States. The 2020 US election was marked by pitched battles between Biden’s Democratic and Trump’s Republican Party. The January 6, 2021 attack on Capitol Hill by Trump’s supporters has been the lowest point in the US elections.
US Stock in the Green
The US stock features opened on a positive note on Tuesday, January 19, 2021, a day after the national holiday on account of the death anniversary of Martin Luther King Jr. The US 500 Features was up by 22.37 points to 3,784.12, or 0.71 percent, in the early session, while the US 30 Features gained 175 points at 30,892.5, or 0.56 percent. The Dow Jones Industrial Average rose by 159.12 points to 30,973.38, or 0.52 percent. The US Dollar Index, however, was down by 0.25 percent at 90.525. Wall Street is expected to see brisk trading during the week, and with the change of guard in Washington, the markets are all set for an eventful period.
