US stocks rally by 2 per cent on election day as investors bet on a clear winner

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US stocks surge as investors hope for a decisive outcome after an acrimonious campaign in the race to become the next US president.

US stocks have rallied, with the Dow Jones index jumping more than 500 points as Americans vote in the US presidential election.

Investors are betting the divisive presidential race could end with a clear victory for Democratic Party candidate Joe Biden.The Dow was up 2.1 per cent or 557 points to 27.At 6:50am AEDT, it was up nearly 1.8 per cent to 3,370.Major European share indexes surged. In London, the FTSE 100 index gained 2.3 per cent to 5,787, the DAX in Germany rose 2.6 per cent to 12,089, and the CAC 40 in Paris jumped 2.4 per cent to 4,806.The ASX SPI 200 futures index is up four points to 6,056.

The market jumped yesterday after the Reserve Bank cut interest rates to near zero and announced a $100 billion government bond buying program. The Australian dollar has jumped 1.3 per cent to 71.42 US cents, up by nearly 1 cent from yesterday's local close.West Texas crude rose 2.5 per cent to $US37.74 a barrel.

 

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