FTSE 100 rises as Donald Trump concedes Joe Biden will take over as President

The FTSE 100 was set to rise today as traders hoped for a bumper stimulus package from Joe Biden to boost the US economy through the Covid-19 crisis. President Trump conceding that the Democrat will take over this month was seen as positive for share prices.

European stocks were expected to build on their bumper week as investors chose to all-but ignore the riots on Capitol Hill and look ahead to a world of vaccinated populations and Democrat-led financial support for the world’s biggest economy.

The FTSE 100 was being called up 30.8 points at 6904.2 by traders on the IG Index platform, and 49 points gains were being forecast on CMC Markets.

CMC was calling the Dax 30 in Germany up 142 at 14110 and the CAC-40 up 49 at 5718.

The US has already approved a $900 billion stimulus but the view in the markets is that, with control of both houses, Biden will be able to follow through on his instincts to help Americans financially and push through a far bigger package.

All eyes will be on US non-farm payrolls out this afternoon with expectations for a large fall in new employment - highlighting to Democrats why such an aid package is needed.

The US economy’s recovery from the earlier stages of Covid has been faltering as cases skyrocketed and it now seems inevitable that the situation will worsen as the Kent version of the virus spreads.

Analysts expect non-farms to show the US added 71,000 jobs in December compared with November’s 245,000.

The unemployment rate is expected to rise from 6.7 to 6.8%.

Share prices in Asia and Australia were having a strong session today with the Nikkei in Japan hitting its highest point since August 1990.

The dollar is likely to continue on its volatile path. CMC Markets today noted that the currency has tended in recent months to have a pattern of jump-collapse-repeat. 

The currency’s gains have been welcomed by commodities investors, driving gold and other minerals higher. Oil hit new 11 month highs yesterday, underpinning the oil and mining rich FTSE 100.

Later this morning the Halifax house prices index will give a view on the state of the property market. Support packages on stamp duty have kept prices buoyant through the crisis and today they are expected to gain 0.5%.