Biden win lifts world stocks to record peak; dollar fades

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World stocks hit a record high on Monday and the dollar stayed weak as expectations of better global trade ties and more monetary stimulus under U.S.

Passersby wearing protective face masks walk past a screen displaying Nikkei share average and world stock indexes outside a brokerage, amid the coronavirus disease outbreak, in Tokyo, Japan October 5, 2020. REUTERS/Issei KatoMILAN/SYDNEY: President-elect Joe Biden supported risk appetite.

MSCI's broadest index of Asia Pacific shares outside of Japan jumped 1.3per cent after hitting its highest since January 2018. The pan-Europe STOXX 600 climbed 1.5per cent to one-month highs by 0846 GMT. That would mean better earnings prospects for companies exposed to the world's largest economy but also that the U.S. Federal Reserve might have to step in to further ease monetary conditions and support a pandemic-hit economy.

"You could potentially gravitate your portfolio more towards higher-beta type markets, such as emerging markets, and there is potential for better prospects in the energy space than would have been the case with a Democrat clean sweep." U.S.-based wealth manager Jim Wilding at Confluence Financial Partners in Pennsylvania added a word of caution considering the S&P 500 is not far from record highs and equity valuations are generally at heady levels.

 

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