Democrat Senate win drives European stocks higher

Democrat Senate win drives European stocks higher

European and Global  stocks and commodities gained on Thursday in anticipation of a big borrowing and big spending Democrat administration driving growth, following runoff elections that gave the party control of U.S. Congress.

U.S. Treasuries had suffered their steepest selloff in months after Democrat victories in two Georgia races handed them narrow control of the Senate, bolstering President-elect Joe Biden’s power to pass his agenda.

“Even though its a razor-thin margin, it gives Democrats a two-year window (to pursue their agenda),” he said. “Anything that benefits from rising prices is going to do well…when you look at the policy settings they are trying to get through, it’s about printing (money for) Main Street and not Wall Street.”

Wednesday’s bond selloff pushed the yield on benchmark 10-year U.S. Treasuries over 1% for the first time since March. It rose as high as 1.0510% on Thursday. [US/]

The U.S. dollar wallowed as the result became clearer because currency traders reckon big and growing U.S. trade and budget deficits will weigh on the greenback. 

The dollar struck an almost three-year low against the euro of $1.2349 and hovered near that level on Thursday. It also languished near recent multi-year troughs against the Aussie,kiwi and Swiss franc.

The pan-European Stoxx 50 climbed up by 1.78%  to 3,611.08. In the cash markets, the DAX futures Germany was trading 1.76%  higher at 13,891.97. CAC 40 futures in France climbed up by 1.19% to 5,630.60, while the FTSE 100 futures in the U.K. rose by 3.47% to 6841.86,at the time of writing.

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