Australian shares jump to eight-month high after Joe Biden wins US election

The first day of the second quarter was positive for the ASX.

The first day of the second quarter was positive for the ASX. Photo: AAP

The Australian share market has jumped to its highest level in in eight months after Democrat Joe Biden was confirmed as the winner of the US Presidential election.

By 11.10am AEST, the benchmark ASX 200 was up 1.4 per cent to 6278 points.

The last time the market traded at these levels was March 6 (at 6216 points), when the coronavirus sell-off began.

Nine out of every 10 stocks traded higher, with REA Group (+6.9pc), Treasury Wine Estates (+4.5pc), Domain Holdings (+5.3pc) and Fortescue Metals (+4.5pc) among the best performers.

On the flip side, Tabcorp (-1.3pc), ANZ (-1.4pc) and Whitehaven Coal (-1.4pc) had some of the heaviest losses.

Global markets have surged, despite expectations the Republicans will retain control of the US Senate.

“This combination of course likely means a Biden Presidency’s ambitions will be curtailed in a grid-locked political scene with very few landmark legislative changes being enacted by Congress,” NAB’s director of economics Tapas Strickland wrote in a research note.

“Nevertheless, that also means less likelihood of regulatory changes (particularly favourable for tech) and tax changes which can be bullish for stocks.”

The Australian dollar was slightly higher (+0.4pc) at 72.88 US cents, as the greenback slumped to a two-month low.

Despite last week’s volatility, the local currency “can lift modestly by 2‑3 per cent” in the next couple of months, Commonwealth Bank currency strategist Kim Mundy said.

“The Australian dollar has already lifted by 1.5 per cent since Thursday.

“However, President Trump’s legal challenges suggest volatility can remain elevated.”

Spot gold had lifted (+0.3pc) to $US1957.10 ($2685.56) an ounce, and Brent crude oil climbed (+0.3pc) to $US37.24 ($51.10) a barrel.


Topics: Joe Biden
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