The dust is about to settle on the US presidential election, which has been jangling nerves in global markets.Overseas markets are already celebrating the likely election of Joe Biden, the Democratic nominee.In recent 4 days, the Us stock market Dow Jones index and Nasdaq index rose 4.5% and 3.6% respectively.
So what does biden’s election mean for the Global economy’s A-share markets?What changes and impacts will it bring?The teacher will give you a careful analysis of the following.
If Biden is elected,
Expectations of a global economic recovery will intensify
On the whole, There is a big difference between Biden’s governing platform and Trump’s. Among them, Biden’s camp is more active in proposing epidemic response plans and a larger economic stimulus plan, which are the main reasons for the positive response of the capital market.
First of all, compared with Trump’s $1 trillion infrastructure bill, Biden’s infrastructure plan is as large as $2 trillion and promises to be completed within four years of his term.This has directly driven the market out of the previous adjustment due to the difficult labor of the economic stimulus package.
At the same time, Biden advocated an extension of unemployment benefits of $600 a month and a higher minimum wage.It is also expected to support U.S. consumer spending and the macro economy.
Second, biden camp against the government and epidemic prevention, trump in platform, the new outbreak response in the first place, and put forward the more active the outbreak response of prevention and control measures, is expected to rebound faster and more effective control of the epidemic, to boost the recent outbreak of rebound in the us and Europe, sealing city restart left you battered by the impact of market confidence.
All this will boost confidence in the global economic recovery.
A shares across the New Year market will be tamped
As for A-shares, first of all, if Biden is elected, the election, the biggest uncertainty overseas, will be landed, at least in the short-term capital market sentiment positive.In the medium to long term, though, Biden has identified China as a major competitor and has called for Allies to put pressure on China, given the protracted war in science and technology between the United States and China.
But in the short term, Biden advocates the elimination of trade barriers, and has previously announced that he will remove tariffs against China, which is expected to lead to the repair of machinery, electronics, communications, chemicals, metals and other industries that have been greatly affected by trade frictions between the TWO countries.
In the medium and long term, China will continue to strive to achieve high-end technological breakthroughs and become an innovation-oriented country.In this context, technology stocks will rise again to become the vortex center of the A-share market, mainly 5G, semiconductor, which was severely suppressed in the early stage.The performance of these two plates in the last few days, you can take a look, or very good.
Finally, a small risk, new energy plate.In Biden’s outline, clean energy has become a central theme across the economic stimulus, jobs and climate issues.And he explicitly announced a $300 billion investment in new technologies and clean energy.
With The election of Biden, China as a major exporter of new energy, new energy sector fundamentals are also expected to directly benefit.But this plate recently went up obviously on the high side, now to chase, set is not worth it, pay more attention to the adjustment of sufficient technology stocks.