You are here: Home » International » News » Politics
Business Standard

US elections 2020: With Biden declared winner, what's next for investors

Republican President Donald Trump, who has made repeated claims of electoral fraud without providing evidence, immediately accused Biden of "rushing to falsely pose as the winner."

Joe Biden | 2020 US elections | US Presidential elections 2020

Reuters  |  Washington D.C. 

Biden | Photo: Bloomberg
President-elect Joe Biden | Photo: Bloomberg

With Democrat projected winner of the US presidential election by major television networks on Saturday, many welcomed the news as good for markets but warned of continued volatility.

Republican President Donald Trump, who has made repeated claims of electoral fraud without providing evidence, immediately accused Biden of "rushing to falsely pose as the winner."

Here is what said they will be focused on next: * The Senate. All eyes are now on two runoffs expected in Georgia in January, which will determine who controls the upper chamber of Congress. are weighing the impact that will have on a Biden administration's ability to push through stimulus, regulation changes and any tax increases.

* Trump's reaction. Although investors are growing less worried about huge gyrations in US stocks, some expressed concern about what Trump might do during the lame duck session before inauguration. Unpredictable moves could insert volatility in the markets, they said.

* Stimulus and the Fed. Attention will now turn to Biden's ability to get fiscal stimulus agreed and how much more the Federal Reserve can do to support the coronavirus-hit economy.

With the potential prospect of a Republican Senate, expectations of an easy large stimulus win have been wound back. What happens there will also have implications for Treasuries.

* Currencies. An increasingly bearish picture is unfolding for the US dollar, which has suffered its worst week since March on signs that Fed money printing rather than government spending may be deployed to bolster the economy.

* Tech stocks. High-flying tech stocks are set to benefit from potential gridlock as it reduces the chance of investors selling those shares on concerns about capital gains tax hikes.

Still, these stocks could see some tax-fueled selling ahead of the Georgia runoffs. Other stocks that benefit from a Biden win: solar, cannabis and infrastructure.

* Biden's Cabinet. Investors are now looking ahead to Biden's Cabinet picks to gauge whether he will govern as a business-friendly moderate or promote progressive legislation that could weigh on sectors such as financials and oil but bolster clean energy.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, November 08 2020. 16:07 IST