Foreign media: Biden’s official succession stimulates global stock market to soar

According to foreign media reports, Biden officially took over the presidency of the United States, stimulating the global stock market to soar, and the three major stock indexes of Asian stocks and the United States reached new highs. According to Reuters covid-19 Shanghai January 21st, Asian stock markets are rising as people expect the Biden administration to introduce more stimulus policies to ease the economic trauma brought by the new crown. On the 21st, the Shanghai and Shenzhen 300 index rose 1.62% and the Shanghai Composite Index rose 1.07%. The Minsheng Asia Pacific (excluding Japan) index rose 1.43%, while Japan’s Nikkei index rose 0.82%. According to Agence France Presse, New York, January 20, local time on Wednesday, when Biden officially took over the presidency of the United States, the U.S. financial market, especially Wall Street, experienced a wave of optimism. On the same day, the Dow Jones Industrial Average (at 31188.38), the NASDAQ Composite Index (at 13457.25) and the standard & Poor’s 500 index (at 3851.85) climbed to new highs, breaking the record set on January 8. In the oil market, West Texas Intermediate crude for February delivery rose 0.49% to $53.24 a barrel. The US dollar exchange rate remained stable. The report said that with the new US government coming to power, the market predicted that it would implement an ambitious economic stimulus plan. Biden has said he plans to spend $1.9 trillion urgently to deal with the impact of the epidemic. The market believes that this is expected to stimulate consumption and investment. This prospect was strongly supported by Janet Yellen, who will be finance minister, when she testified in the Senate on the 19th. Quincy Crosby, an expert at Prudential Financial Group, explained: “Janet Yellen’s statement triggered market optimism in two ways.” “First of all, she advocates massive fiscal stimulus, which is exactly what the market wants In addition, she also said that it may be possible to wait until the epidemic eases and the economic situation gets better before raising taxes, whether it is corporate tax or personal tax. ” The report also pointed out that although Wall Street has performed well since the beginning of the year, many experts have been worried that several major stock indexes are overvalued and that their growth rate is faster than that of corporate profits, which needs to be corrected. The progress of the covid-19 vaccine in the United States has also been questioned as the new crown outbreak continues to rage in the United States and the number of deaths is 400 thousand. In addition, the website of the Financial Times reported on January 20 that with Biden taking office as the 46th president of the United States, the US stock market set a new record, because people are optimistic that Biden’s government’s $1.9 trillion stimulus plan may help protect the global economy from the new coronavirus. The report noted that the standard & Poor’s 500 index rose 1.4% on the 20th, setting a closing record, extending the rally that occurred on the 19th when Yale London urged Congress to “vigorously act” to stimulate the economy. Driven by the 16.9% rise in Netflix shares, the technology focused NASDAQ index rose 2%, a record high. Netflix previously released its latest financial report, which said it had more than 200 million subscribers and hinted that it would buy back shares. “Investors believe there will be a” blonde girl “market in the stock market,” said Silvia darangelo, a global economist at Hermes investment management She said the Fed’s response is unlikely to be to raise interest rates, even though the “massive” stimulus plan in the US is expected to push stock prices higher this year. The interest rate increase will affect the profit prospects of enterprises. “The market is looking to monetary policy to remain loose,” she said She pointed out that Fed chairman Powell said last week that the Fed was unlikely to respond “too early” to any economic recovery momentum.

(editor in charge: He Xin)

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