Joe Biden on a screen in the Times Square area of New York.
Photographer: Michael Nagle / Bloomberg
Photographer: Michael Nagle / Bloomberg
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The markets love Joe Biden’s turn as president of the United States.
The S&P 500 index posted its best reaction on Wednesday during the first day of the presidential inauguration since at least 1937, with a 1.4% jump over the prospect of stimulus spending of about $ 2 trillion. dollars. Meanwhile, global stocks are coming to a head historical highs.
Biden’s formal transition to the White House has consolidated investors ’faith in companies akin to their policies, while those that fail to meet their priorities lose. Shares linked to clean energy rose, and have continued to make gains since Biden won the election. Defense equipment manufacturers and prison operators, sectors that worked well under Donald Trump, fell.
This is what moves markets when Biden takes office.
Renewables in favor
Some clean energy resources in South Korea and Japan increased Thursday when Biden signed powerful actions to combat climate change just hours after taking office. It is moving to return the United States to the Paris climate deal and has imposed a moratorium on oil leasing in some parts of the Arctic.
From South Korea OCI Co., a manufacturer of solar equipment, rose to 9% and that of Japan West Holdings Corp., which builds solar power generation systems, gained 4.5%.
In Europe, renewable energy stocks, including the wind farm Vestas Wind Systems A / S i Siemens Gamesa Renewable Energy SA outperformed the Stoxx 600 Energy Index, both gaining at least 2%.
Elsewhere, stocks exposed to building refurbishment to make them more energy efficient increased and surpassed the construction subindex, led by insulation manufacturers. Kingspan Group Plc i Rockwool International A / S together with the Dutch LED lighting firm It means NV.
The prisons struck
The actions of U.S. private prison operators, long targeted by Democrats, fell. CoreCivic Inc. fell 7.8% i Geo Group Inc. fell 4.1% on Wednesday. Shares of both companies fell further since Dec. 22.
Defense drops
Asian defense actions fell short of expectations that Biden’s less confrontational policies would dampen global geopolitical risks and the need to increase spending in the sector. Japanese rifle maker Howa Machinery Ltd. fell 7.8% while Australian defense shipbuilder Austal Ltd., which earns about 77% of its U.S. revenue, fell 2.7%.
– With the assistance of Sam Unsted and Beth Mellor
(Adds details on European actions moving in paragraphs 7 and 8)