Not only many politicians but also financial investors have shown their relief at the victory of the Democrat Joe Biden in the US presidential election. The following is a list of the issues that investors focus on:
The Senate
In January Georgia will hold runoff elections for both state seats in the Congress Chamber. The votes will determine whether Trump's Republicans lose their Senate majority. It depends on whether the Biden government can enforce major new economic aid in the Corona crisis, comprehensive rules and regulations or tax increases.
Technology stocks
Here, too, the Senate is important: if the Republicans retain their majority, the fear of American investors about an increase in capital gains tax should diminish. Shares in solar energy companies and cannabis producers could benefit from Biden's choice.
The Fed
Parallel to the negotiations on a new Corona aid package in Congress, it is being followed up on what the US Federal Reserve wants to do to support the American economy. This should also have consequences for US Treasuries.
Biden's cabinet
It is eagerly awaited who will take over the key posts in the new government – moderate, more business-friendly Democrats or representatives of the progressive wing. The latter should weigh on financial and oil stocks, but give a boost to alternative energy stocks.
Trump's reaction
Some investors have expressed concern about what the Republican incumbent, a "lame duck", could do before the handover in January. This could lead to dislocations in the stock market, they warn.
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