Highest close in the Nikkei since 1991
Equities are feeling more upbeat as investors are taking in Biden’s victory in the US presidential election. The Hang Seng is up by 1.5% with the Shanghai Composite seen up by 1.9% as we look towards the closing stages today.
Elsewhere, US futures are also pointing to solid gains with S&P 500 futures up 1.6% while Nasdaq futures are up 2.5% ahead of European trading.
The market is largely sticking with the election playbook so far, though largely ignoring any risks from a smaller stimulus or that one may not come in the lame duck session.
I reckon the market is waiting to hear from Biden this week on his plans for that, so the election relief rally remains the key focus for now at least.
Elsewhere, the dollar is hammered across the board over the past few days and that is continuing today with the greenback sitting lower alongside the yen.
EUR/USD is on the cusp of hitting 1.1900 while we are seeing some key technical levels being stretched. The Bloomberg dollar index has fallen to a fresh low since May 2018 and is on the verge of testing its 100-month moving average – first time since 2014.