Global shares reached new heights on Thursday following Joe Biden’s inauguration, driven up by the 46th US president’s promise of $1.9tn in stimulus spending and the jettisoning of isolationist policies pursued by his predecessor.
On Wall Street, the blue-chip S&P 500 stock index rose 0.2 per cent in early dealings and the tech-heavy Nasdaq Composite climbed 0.4 per cent following Wednesday’s record highs. The FTSE All-World index of global shares climbed 0.3 per cent to a fresh peak.
Following his inauguration, Mr Biden swiftly overturned some of Donald Trump’s actions, signing orders to rejoin the Paris climate accord, halting the US withdrawal from the World Health Organization and scrapping a ban on entry to the country by citizens from some Muslim-majority nations.
“Markets are celebrating the idea of out with the old,” said John Roe, head of multi-asset funds at Legal & General Investment Management. “The concept of a United States that isolates itself and does not care about issues that matter globally is being reversed very rapidly and that is good for international co-operation, international law and international trade.”
The rise in the S&P 500 on Wednesday was the biggest on any presidential inauguration day since Ronald Reagan was sworn into office for the second time in 1985.
MSCI’s Emerging Markets index also reached a record high after Mr Biden’s inauguration. This gauge has risen more