Global stocks hit record high as markets welcome Biden victory – business live

Rolling coverage of the latest economic and financial news

10.15am GMT

During his campaign, president-elect Biden pledged to deliver a clean energy revolution, and to rejoin the Paris climate change agreement as soon as he took office.

And this morning, former Bank of England governor Mark Carney has drawn parallels between the climate and Covid crises.

“We’ve made considerable progress and momentum is growing…The Covid crisis has not altered that. In fact what Covid has done – this tragedy has exposed the problems with undervaluing resilience, ignoring systemic risks and not investing up front.

And so it is with climate change: a crisis that involves the entire world, and from which no one will be able to self-isolate.”

Related: Joe Biden could bring Paris climate goals ‘within striking distance’

10.04am GMT

Optimism about the outlook for risk assets during a Joe Biden presidency has driven global stock markets to a record high today, reports Bloomberg:

“Stock markets have responded to the U.S. elections with relief,” Ulrich Urbahn, head of multi-asset strategy at Berenberg Bank, said by email. “One reason for this, apart from the reduction of hedges, may have been that the election result (president Biden, divided Congress) essentially secures the status quo but with less political tension.”

Urbahn said Berenberg remains constructive on equities and optimistic on European small caps, Asian emerging-market equities and bonds amid bets that the Covid-19 vaccine approval is approaching and that the global economy will recover next year.

“Why the excitement? Hopes of less diplomatic and trade angst, a lower dollar helps global rebalancing,” Chris Bailey, European strategist at Raymond James in London said in a note. “A lot of hope… but over two months until inauguration day!”

Investors expect Republicans to maintain control of the Senate, making it harder for a Biden administration to push through major policy changes, from a planned tax hike to a big fiscal stimulus package.

What we lost in the previous week we made back last week and more. America has voted, Biden wins and the market likes it,” said Armin Peter, head of European debt syndicate at UBS.

Mr Biden has made fighting the coronavirus outbreak in the US a priority and is expected to spearhead an additional stimulus effort to cushion the economic blow from the pandemic, in addition to raising taxes.

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