In the United States, the main stock indices opened higher. The general index S&P 500 was quoted up 0.5 percent, while the technology-oriented Nasdaq Composite had risen 1.1 percent. The Dow Jones was close to yesterday’s closing level.
On Thursday, the results of the US presidential election melted in the market. Stocks helped the Republicans to a strong rise yesterday Donald Trump’s with the win.
Especially small companies were in strong demand. The Russell 2000 index, which describes the development of small companies, rose as much as 5.8 percent yesterday, which is one of the strongest daily increases in the history of the index.
The general index S&P 500 also developed strongly. It rose as much as 2.5 percent, according to Deutsche Bank’s chief economist Jim Reidin according to the strongest post-election daily rise.
The market’s expectations about the direction of the central bank Fed’s monetary policy also changed slightly with the election result. Even before the election on Monday, the market expected that the Fed would cut its key interest rate by 25 basis points at the December meeting with an 83 percent probability, while now the probability was only 69 percent.
The Fed will give its interest rate decision today at 21:00. The market considers it almost certain that the key interest rate will be cut by 25 percentage points.
Statistics on new unemployment compensation applications were received at half past four. There were no surprises in the figures. 221,000 new applications were received, while the consensus of economist forecasts collected by the news agency Bloomberg expected 222,000 applications. According to revised figures, 218,000 applications were received in the previous week.
Source: www.arvopaperi.fi
