Wall street celebrate the Pfizer's coronavirus vaccine and the Joe Biden's tight win in the US presidential elections with strong gains, close to 4% in the case of the Dow Jones. Investors discount a positive scenario for stocks for the vaccine, along with support from the Federal Reserve and higher public spending, although limited by the forecast that Democrats won't control the Senate, something that will not be known until the beginning of the year.
The Dow Jones it has reached a new all-time high above 30,000 points, while the S&P 500 has surpassed 3,600 points. For his part, Nasdaq, which had led the increases throughout the year, lags behind and is up 1%, although it is trading above 12,000 points, new record.
The American pharmaceutical giant Pfizer and the German biotechnology firm BioNTech have confirmed that their coronavirus vaccine is more than 90% effective to prevent Covid-19 among those no evidence of previous infection, according to data published this Monday. The news has caused a turning point in the markets and gains of 8% in the case of the Ibex.
Esty dwek, responsible for global market strategy of Natixis IM Solutions, states that "the division of Congress will be seen as the best result for the markets", since the Republicans will limit the stimulus plan that Biden wants to about 1.5 billion dollars. In addition, the president-elect will not have a free pass to raise taxes on large companies, which is considered positive for the American stock market .
The adjusted electoral result will force Biden to choose "a centrist cabinet so that it can be approved by the Senate" and will cause that neither can undertake the fiscal and regulatory program in the terms exposed in the campaign.
And it is that, for the markets, the most important race is still the Senate, whose final results will not arrive until January, after the second round in the two seats from Georgito. The forecasts indicate that both seats will go to the Republicans which will therefore keep their majority, but we won't know for sure until early 2021.
From the business point of view, explains Dwek, markets believe that "it is likely that Biden cut some of the tariffs on China Y take a more traditional approach with respect to this rising power. Having said that, we do not believe that tensions will dissipate completely, but the forms are likely to improve. "
Dwek adds that "given the uncertainty about the magnitude and timing of the stimulus, we could observe some volatility in the bags ".
For his part, Donald Trump remains stubborn in challenge the result before the Supreme Court and ask for a vote count, something to which every candidate is entitled. But the pressure from republicanism to let him be and grant the presidency to Biden is increased by forced marches with the congratulations of the former president George W. Bush to the democrat. The deadline for appointing a new president is January 20.
In other markets, oil West texas bounces 3.28% to $ 40.42, while the euro appreciates 0.28% and changes to 1.1905 dollars, two-month lows against the European currency. Besides, the ounce of gold down 5.11% to $ 1,851; and the profitability of 10-year American bond it rises to 0.92%.