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Markets shrugged off Biden victoryINTL

Markets shrugged off Biden victory

The political story of the year was no doubt the electoral clash between Donald Trump and Joe Biden. And while President Trump perhaps still hasn’t come to terms with the result, the US markets seem to have accepted the result with little fuss, despite most major news networks taking four days to call the result.

Nevertheless, despite winning the White House, Democrats did not obtain a clean sweep of the Senate. However, as both Senate seats in the southern state of Georgia advance into runoffs, with the final elections to be held on January 5th, there’s still a degree of uncertainty about whether the Biden presidency will be constrained by a Republican-controlled Senate, or whether control could swing to the Democrats.

why it matters
Though presidential elections can have a huge impact on US equities and the US dollar, this year, the markets seem to have decided that it had more important things to focus on, such as wrangling over a stimulus package. This was at odds with claims made by President Trump before the election, who threatened that the markets would collapse if his opponent was triumphant. Nevertheless, with the final result still hanging in the balance, markets could react to the Georgia results with volatility if it looks like Democrats are on track to capture Congress.