(Reuters) - Democrat Joe Biden captured the U.S. presidency on Saturday, several major television networks said.
The news is likely to be welcomed by markets, as it brings some certainty, although President Donald Trump has not conceded, investors said.
JIM SMIGIEL, CIO, NON-TRADITIONAL STRATEGIES, SEI INVESTMENTS, PENNSYLVANIA
“The wild card is how long the lawsuits last. Expectations will be for Trump to take it as far as possible and keep up the rhetoric, but we should get a sense of how fruitful they may be well before he will throw in the towel.
“We would expect the market to look past the tweets and press conferences and begin to settle on the reality of a Biden Presidency with a Republican Senate.
“In fact, attention may begin to turn to the cabinet picks. State and Treasury will get the most attention. The close Senate split will complicate the more obvious picks.”
WIN THIN, GLOBAL HEAD OF CURRENCY STRATEGY, BROWN BROTHERS HARRIMAN
“To me the big game changer is that there are two senate seats contested in Georgia.
“There’s going to be a protracted amount of uncertainty from now until this race is decided.
“The bottom line is I think we are still in a period of uncertainty.”
BILLY WEBER, CEO, CHECKPOINT CAPITAL, TEXAS
“The equity markets love gridlock. Since election day on Nov. 3, the obvious decision the markets have made is to anticipate ongoing gridlock, as it is expected the Senate will remain in Republican control.
“As we march forward, it is anticipated that the equities market will begin to take profits accordingly. Combined with the weak dollar, it is anticipated that risk-off trade will result in lower yields in U.S. Treasuries.
“There is a question mark as to whether we will see a stimulus package between now and the end of the year and what the scope of it will be.”
NIGEL GREEN, FOUNDER, DEVERE GROUP, DUBAI
“Biden will deliver a boost to global stock markets and the U.S. and world economy. Although a Biden win was pretty much priced-in by the markets, his victory will eliminate uncertainty – which they loathe – and they will rally further as a result.
“Even possible legal challenges from Trump will be dismissed by investors who will instead be focusing on the renewed certainty and stability that a Biden White House will bring, including in key areas such as trade tensions with China, keeping the U.S. in the World Health Organization, resigning the Paris climate agreement, and abiding by other international agreements and long-standing international allies.”
JASON WARE, CIO, ALBION FINANCIAL GROUP, SALT LAKE CITY, UTAH
“All things equal, it would seem that this would a positive for stocks.
“The next focus is the Senate, we haven’t got away from election uncertainty yet. The probabilities suggest we will have Republicans retain control and that is in part I think why we had markets were in rally mode this week.
“We could get more stimulus probably with Biden than Trump, maybe infrastructure down the road, trade wars go away basically Day 1... But (if we have) the GOP in the Senate, (it) tamps down the likelihood of large tax increases.
“I’ve thought about the idea that if Biden wins, given Trump’s temperament, what would he do on the way out if he feels really burned by voters?
“Investors need to be prepared for some volatility. There is certainly a risk to stock prices if we get bad tweets.”
JIM AWAD, SENIOR MANAGING DIRECTOR, CLEARSTEAD ADVISORS LP, NEW YORK
“Trump is going to fight for a few weeks. That’s going to be a little unsettling for markets. But most commentators believe Biden will prevail, that the election is over, and the Senate is going to have to compromise.
“Markets are going to like it because Biden is not going to go too far left. It’s going to be a centrist government, not a government by tweet. It will be more predictable, and it will have a more traditional foreign policy.
“What this means is a higher probability of a stimulus, but less large than one in a blue wave. There are reasons to stick with the growth stocks and to broaden out to the rest of the economy.”
CHRISTOPHER STANTON, CIO, SUNRISE CAPITAL PARTNERS, SAN DIEGO
“I think that Biden is good news for the markets.
“We’re all so tired of the whipsaw that came with the Trump tweets.
“I think the markets are all literally exhaling and saying, ‘Thank heavens we will return to a more normal environment where the White House doesn’t try to influence the direction of markets day to day.’
“The super important part here is for Republicans to hold the Senate, because I think the markets like gridlock.
“We’ve gone cautiously long the market indexes after the election, primarily S&P and Nasdaq.
“The chances of Trump reversing the decision are near zero and the markets are pricing it that way.”
RICK MECKLER, PARTNER, CHERRY LANE INVESTMENTS, NEW JERSEY
“It seemed inevitable. This is what the market anticipated, it’s what led to the rise in the last couple of days.
“Trump doesn’t seem like he is going to go quietly. The re-opening of the two Senate races in Georgia will create some uncertainty in the government and the focus will shift to that.
“It’s not the end of the process and we are going to have to wait for the end of the Senate races. The market is pretty sanguine about (the lawsuits) unless they somehow manage to unearth proof to support their claims.
“For the market, if the stimulus is going to be delayed until January, it will kick some of the enthusiasm from the market.”
DAN MOREHEAD, CEO, PANTERA CAPITAL, MENLO PARK, CA
“A divided government – Democratic White House, Republican Senate – would likely result in more pressure on the Federal Reserve to expand their balance sheet. This money printing will inflate the price of things whose quantity cannot be eased – like gold, bitcoin, real assets.”
Compiled by the Global Finance & Markets Breaking News team
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