The blue-chip CSI300 index rose to more than a five-year high
Wall Street stocks finished mixed last week as the election results were still undecided. The S&P 500 edged just 0.1% lower but gained over 7% on a weekly basis. The Dow Jones Industrial Average slipped 0.2%, and the Nasdaq Composite added less than 0.1%.
Today in Asia stocks rallied after former Vice President Joe Biden declared victory, ending the recent uncertainty. The blue-chip CSI300 index rose to more than a five-year high amid hopes of a thaw in the Sino-American trade relations. Japan’s Nikkei 225 surged 2.3%, Australia’s S&P/ASX 200 added 1.8%, while South Korea’s Kospi added 1.4%.
In Europe, equities opened higher, reacting to the news that Biden topped the necessary 270 Electoral College votes. Election news overshadowed the latest developments on the coronavirus front. Of note, the U.S. new-case tally was the highest ever for a Sunday. In Europe, the backdrop of tighter virus restrictions weighing on the economic outlook in the fourth quarter.
Meanwhile, the dollar looks steady, trying to regain some ground following the recent sell-off seen amid the heightened political uncertainty. As such, EURUSD was rejected from mid-September highs around 1.19 and has retreated to the 1.1870 area in recent trading. Despite the retreat, the euro has the risk skewed to the upside and could retest the 1.20 handle in the medium term as the dollar remains on the defensive nearly across the board.
Elsewhere, gold prices climbed to mid-September highs around $1,965 on Monday, extending the ascent amid a weaker dollar. Now, as the precious metal has settled above the key moving averages and the $1,900 handle, market focus is shifting back to the $2,000 figure last seen on August 19. On the downside, the immediate support now arrives at $1,937.
