According to expectations and predictions of analysts and financial strategists, Tuesday’s European stock market should open on 24 November 2020 with higher values of its share prices. Along with this trading trend, today at 8:31 am CET there was also positive investor sentiment in relation to the single European currency, the Euro (EUR), with the global currency pair EUR/USD trading at a mutual exchange rate US$1.185 per EUR, with the daily strengthening of the EUR by +0.10% against the USD so far.
Economic correspondents have suggested that the optimistic investor sentiment is mainly caused by positive news across from the United States, as preparations for the government’s transition of power are finally underway from current president Mr. Donald Trump to President-elect, Mr. Joe Biden. This is happening while Donald Trump still has not publicly acknowledged his defeat and is disputing the election results in court. However, this act of preparing to hand over the government’s agenda before the inauguration of the new US President on 20 January is essential, given the key role of the US President in relation to national security.
The relationship between Mr. Biden and the European Union is looked at very positively by analysts, and this gives European investors a positive outlook for continued business cooperation without customs duties and other fees that would otherwise threaten to continue during the Trump administration. Mr. Biden also introduced some of his well-known key cabinet members so investors can guess what to expect. It is certainly worth mentioning the nomination for Mr. Antony Blinken as US Secretary of State who has a personal relationship with Europe. His father was ambassador in Budapest, Hungary, and then Blinken himself studied in France and spent many years, mostly in Paris. He has also held senior positions in both the Obama and Clinton administrations and has been a popular adviser to former Vice President Joe Biden in particular. Another well-known person, whom Mr. Biden nominated for the position of Minister of Finance, is the former head of the US Federal Reserve System (Fed), Mrs. Janet Yellen.
According to analytical sources another strong signal is a very early outlook for possible vaccination against Covid-19. Research and clinical trials have already advanced to mass production and therefore it is expected to be distributed in the near future. In Germany, for example, the plan is to start vaccinating the population the same time as in the USA – in mid-December of this year. All these steps, according to analysts, could lead to the recovery of the financial market in connection with the dismantling of measures to combat the pandemic and the subsequent strengthening of the economies of individual EU member states and especially eurozone countries. In relation to the Euro, economic correspondents anticipate growth of this currency along with the European stock market.