GLOBAL MARKETS-Stocks higher, dollar extends losses on Biden win

* Asian stock markets : https://tmsnrt.rs/2zpUAr4

By Swati Pandey
SYDNEY, Nov 9 (Reuters) - Wall Street stock futures started
strong on Monday while the dollar extended its downward trend as
risk assets got a boost on expectations of fewer regulatory
changes and more monetary stimulus under U.S. president-elect
Joe Biden.
The Democratic candidate's victory at the U.S. Presidential
election was largely priced in by markets, which had been
trading with the view of a Biden presidency and a
Republican-controlled U.S. Senate late last week.
E-mini futures for the S&P 500 ESc1 jumped 0.6% on Monday,
signalling a positive start for U.S. markets.
MSCI's broadest index of Asia Pacific shares outside of
Japan .MIAPJ0000PUS inched up 0.1%, after climbing 6.2% last
week to clock its best weekly performance since early June.
"What appears to be divided government at this point
provides more continuity of the current environment rather than
the potential for wide-sweeping changes," said wealth manager
Jim Wilding at Confluence Financial Partners in Pennsylvania.
"We view this is as a net positive for equity markets,
particularly in this scenario given it puts the odds of higher
taxes very low in the years to come," he added.
Wilding added a word of caution though with the S&P 500
.SPX not far from all-time highs.
"While we remain positive over the intermediate term outlook
and believe divided government reduces the chances of a bear
case scenario playing out, we would refrain from unbridled
enthusiasm at current levels," Wilding said.
Equities rallied hard last week, with the S&P500 .SPX up
7.3%, clocking the best gains in an election week since 1932,
according to National Australia Bank analyst Tapas Strickland.
Matt Sherwood of Australian fund manager Perpetual, however,
said Biden's victory did not necessarily warrant a tweaking of
his portfolio.
"In the end we think the U.S. economy is still fairly
fragile and growth's slowing down," Sherwood said.
"You could potentially gravitate your portfolio more towards
higher-beta type markets, such as emerging markets, and there
is potential for better prospects in the energy space than would
have been the case with a Democrat clean sweep."
Analysts also warned the road might get tougher from here as
investors focus on Biden's ability to expand fiscal stimulus and
measures to reduce the spread of COVID-19.
The United States saw a record number of new coronavirus
infections last week, with the total number of cases nearing 10
million. A fiscal stimulus plan is still possible despite a divided
government, analysts said, though a larger package is less
likely. That puts the spotlight on the U.S. Federal Reserve to
do more to bolster the world's largest economy.
As a result, the dollar has weakened USD= in recent days
while growth proxies such as the Australian dollar AUD= have
rallied with the Biden presidency seen less likely to be
confrontational on trade.
The dollar was a shade weaker against the Japanese yen
JPY= at 103.25, after slipping about 1.3% last week.
The Aussie was up 0.3%, having jumped 3.3% last week.
Investor focus will also be on sterling and the euro this
week with UK-EU trade negotiations coming to a head with the EU
summit on Nov. 15.
Later in the day, the Bank of England chief economist will
give a speech on 'The economic impact of coronavirus and long
term implications for the UK'.
The euro EUR= , which climbed 1.9% last week, was a shade
higher on Monday at $1.1887. Sterling GBP= was a shade weaker
at $1.3146.
That left the dollar index =USD off 0.1%.
In commodities, oil prices ticked up a bit after losses on
Friday but stayed below $40 a barrel as rising global
coronavirus cases stoked fears about lacklustre demand. CLc1
LCOc1
Gold climbed, with spot prices up 0.36% at 1,958.7 an ounce.
XAU=

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