With Joe Biden declared winner, what’s next for investors – us presidential election

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With Democrat Joe Biden projected winner of the USA presidential election by major television networks on Saturday, many investors welcomed the news as good for markets but warned of continued volatility.

Republican President Donald Trump, who has made repeated claims of electoral fraud without providing evidence, immediately accused Biden of “rushing to falsely pose as the winner.”

Here’s what investors said they’ll be focused on next:

* The Senate. All eyes are now on two runoffs expected in Georgia in January, which will resolve who controls the upper chamber of Congress. Investors are weighing the affect that will have on a Biden administration’s ability to push through stimulus, regulation changes and any tax increases.

* Trump’s reaction. Even supposing investors are growing less worried approximately immense gyrations in US stocks, some expressed concern approximately what Trump might do all the way through the lame duck session before inauguration. Unpredictable moves could insert volatility in the markets, they said.

* Stimulus and the Fed. Attention will now turn to Biden’s ability to receive fiscal stimulus agreed and what kind of more the Federal Reserve can do to fortify the coronavirus-hit economy. With the potential prospect of a Republican Senate, expectations of an easy large stimulus win have been wound back. What happens there will also have implications for Treasuries.

* Currencies. An increasingly more bearish picture is unfolding for the USA dollar, which has suffered its worst week since March on signs that Fed money printing somewhat than government spending is also deployed to bolster the economy.

* Tech stocks. High-flying tech stocks are set to take pleasure in potential gridlock as it reduces the chance of investors selling those shares on concerns approximately capital gains tax hikes. Still, these stocks could see some tax-fueled selling ahead of the Georgia runoffs. Other stocks that take pleasure in a Biden win: solar, hashish and infrastructure.

* Biden’s Cabinet. Investors are now having a look ahead to Biden’s Cabinet picks to gauge if he’ll govern as a business-friendly moderate or promote progressive legislation that could weigh on sectors such as financials and oil but bolster clean energy.

Top stories/ News / India

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