Wall street has extended its big weekly rally and has advanced strongly (Dow Jones: + 1.95%; S&P 500: + 1.95%; Nasdaq: + 2.59%) behind the Fed monetary policy meeting, which has not taken further measures and has complied with the script; and in the middle of the US electoral chaos, waiting for a winner to be determined soon, which should be Joe Biden, according to the latest scrutinies.
With the gains of this Thursday, the New York indices recover all the falls registered last week, since they rise on average more than 7% (the Nasdaq shoots up about 9%).
On Fed, few surprises in the statement issued by the central bank, which has kept interest rates at historic lows (0% -0.25%) and has not injected any more monetary stimulus (it is already buying assets worth $ 120 billion a month), waiting to meet the new american president.
At statement issued after the meeting, the Fed said that "is committed to using its full range of tools to support the US economy at this challenging time, to further its maximum goals for employment and price stability. "
"The COVID-19 pandemic," added the entity, which at the last meeting anticipated rates at historic lows until 2024, "this causing enormous human and economic hardship in the United States and around the world. Economic activity and employment have continued to recover, but remain well below their levels at the beginning of the year".
For the central bank, "the path of the economy will depend significantly on the course of the virus. The current public health crisis will continue to affect economic activity, employment and inflation short term, and poses considerable risks to the economic outlook medium term".
JOE BIDEN ROZA THE PRESIDENCY AND TRUMP GIVES THE LEGAL BATTLE
According to NBCAfter winning the states of Wisconsin and Michigan from Trump, Joe Biden is just 17 seats away from achieving the majority needed to move into the White House and leads the count in Arizona and Nevada.
"The markets are reacting in a very positive way to the fact that the worst of the electoral uncertainty has already passed, although not all," say the experts of Commonwealth Financial Network. "It seems that at least the worst possible scenarios have been avoided for the markets, which had been their great headwind," they add.
"It looks like we will see a divided Congress, something that historically has been well digested by the stock markets", admit the analysts of Ally Invest. "You can see it in the increases this Wednesday in sectors such as health, communication services and technology," they add.
"The markets are looking more than anything in the world for a peaceful transition of power", they argue in Mercer Advisors. "Some tight elections or taken to the Supreme Court have increased volatility, and they can do it again," they warn.
In macro terms, weekly unemployment claims They confirmed their downtrend on Thursday, but experts say they are still at too high levels.
On the business front, Jeff Bezos is news after knowing that hsold 3 billion dollars in Amazon shares taking advantage of the smokescreen that the elections have caused in the country. This is the third time this year that the CEO of the technology giant has parted ways with his stakes in the company.
In other markets, oil West texas fell 0.9% to $ 38.80, while the euro it appreciates 0.94% and changes to 1.1832 dollars. For its part, the profitability of the 10-year American bond it rebounds to 0.77%.
Across the Atlantic, the Ibex and the rest of Europe have risen eagerly in the heat of the Wall Street rises and, finally, in Asia the stock markets have also closed in green, led by the good work of Hong Kong and technology.
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