London, Jan 6 (AFP/APP): European and US stock markets pushed higher on Wednesday, with London jumping by almost 3.1 percent, on apparent wins by Democrats that should help incoming US President Joe Biden enact his economic plans.
In the US state of Georgia, two Democratic candidates claimed victory in runoff elections that could give the party control of both houses of Congress and make it easier for Biden to enact campaign pledges on spending to boost the recovery of the US economy.
In a swift reaction the yield, or rate of return for investors, on 10-year US Treasury debt rose above 1.0 percent for the first time in nine months, Markets.com analyst Neil Wilson noted.
Russ Mould, an analyst at AJ Bell, told AFP that would help banks’ profit margins, and added that wins by both Democratic candidates would imply “more support to the US economy, the biggest economy and engine of the world economy.”
The Dow Jones index was 0.8 percent stronger in early New York trading. The dollar was higher against the pound and yen. Dealers believe a major win by the Democrats will pave the way for additional fiscal stimulus, although some fear that could lead to higher inflation and interest rates.
The cryptocurrency Bitcoin briefly hit a record of $35,841 on booming investor demand, though it later eased back to around $34,700.
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