Election day rally
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Markets around the world surged ahead of the outcome of the U.S. election. Shanghai gained 1.42%, the DAX 2.55%, the TSX 1.78% and the three main American indices 1.78% to 2.06% (the Dow). Moreover, the small-cap Russell 2000 leapt nearly 3%, while all the American indices rallied into the close.
Essentially, markets are pricing in a Joe Biden victory and even a “blue wave” of the House and Senate. That said, it was uncertain at Tuesday’s closing bell when exactly the U.S. would count all its votes and declare a winner. Big tech bounced 2%, including Microsoft. Except energy, all the Dow components jumped Tuesday, especially industrials such as Honeywell, up 3.23%, and Boeing at 3.4%. It was the strongest election day rally since 1984 when Ronald Reagan returned to office.
On the TSX, there was a green sweep as all sectors enjoyed gains, especially tech (nearly 3%) and financials. Among the heaviest-traded stocks were Cenovus Energy, up 3.74%, the Bank of Montreal at 2.55% and Aurora Cannabis at 2.72%–energy, financials and cannabis. The latest quarterly report from Constellation Software encouraged investors to drive up the stock nearly 5% and Cargojet to soar 7.36%. Meanwhile, both a barrel of WTI and WCS climbed one dollar (around 3%), while gold inched above US$1,900/ounce. Overseas, Chinese tech giant, Alibaba, plunged over 8% on the NYSE, after the Chinese government halted the launch of Alibaba‘s Ant Group, a US$35-billion fintech company.
🏛 iShares Russell 2000 ETF +3%
Ⓜ Microsoft +2%
💾 Honeywell International +3.23%
🛫 Boeing +3.4%
🛢 Cenovus Energy +3.74%
🏛 Bank of Montreal +2.55%
🌿 Aurora Cannabis +2.72%
💿 Constellation Software Inc. +5%
✈ Cargojet Inc +7.36%
🛍 Alibaba Group Holding -8%
