Investors likely relieved about networks calling U.S. presidential election for Biden

In this news, we discuss the Investors likely relieved about networks calling U.S. presidential election for Biden.

NEW YORK (Reuters) – Markets will cheer the certainty after major networks declared Democrat Joe Biden the winner of the U.S. presidential election on Saturday, offering some relief after days the country received conflicting reports on who could be in the White House the next term.

News organizations and polls including the Associated Press, NBC and Edison Research, which Reuters relies on, called Biden’s presidency, leaving little doubt that he had won enough college votes. electoral to win.

However, Biden’s rival, current Republican President Donald Trump, has indicated he will fight the results if he doesn’t win, and his party has filed several lawsuits over the vote count. Reuters reported on Friday that the Republican National Committee was seeking to raise at least $ 60 million to fund legal challenges brought by Trump over the election results.

Even though those battles are unsuccessful, investors also said ahead of the election that they were concerned about who Biden might appoint to his cabinet and whether the US Senate would go to Republicans or Democrats.

A Republican Senate is also expected to control Biden’s cabinet appointments, forcing him to opt for more moderate selections.

It is not known if his choices are considered favorable to the market. For example, investors will be watching closely Biden’s choice for Treasury Secretary, who will likely be involved in any coronavirus tax relief to be negotiated with Congress, with markets pegged in recent weeks on the prospect of a stimulus package. .

Biden brought in former derivatives regulator Gary Gensler to work on a transition plan for financial sector supervision, according to a person with direct knowledge of the matter.

Investors have been concerned for months that the worst-case scenario for the markets is if a contested outcome leads to earnings uncertainty that drag on for weeks, so if Trump gains traction with his challenges, it could cause asset prices to shake. .

Reporting by Lewis Krauskopf; Edited by Alden Bentley and Grant McCool

Original © Thomson Reuters

Originally posted 2020-11-07 09:46:10.

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