New York – The dollar slipped and tech stocks rallied further on Thursday as Democrat Joe Biden drew closer to winning the U.S. presidency while the Bank of England became the latest central bank to say it will increase stimulus.
Biden appeared set to defeat Donald Trump as counting continued from Tuesday’s election. The president’s campaign said it expected to launch more legal action and would emerge victorious.
Investors leapt on the prospect of gridlock in Congress and the notion Silicon Valley will be spared greater oversight as the Democrats are unlikely to win control of the Senate.
Tech shares in Europe jumped almost 3%[.EU], extending a rally of more than 8% this week, while the tech-heavy Nasdaq, S&P 500 and Dow industrials rose 1% or more.
European stocks hit two-week highs on strong earnings reports and after the Bank of England increased its already huge bond-buying stimulus by 150 billion pounds ($195 billion), or about 50 billion pounds more than expected.
The Federal Reserve is scheduled to release its latest policy statement at 2 p.m. and is expected to repeat its pledge to do whatever it can to help the U.S. economy recover from the COVID-19 recession.
“The big bad wolf of regulation and taxes is further away from the door and many who have de-risked into the event will be forced to re-risk,” said Michele Pedroni, a fund manager at Decalia Asset Management in Geneva.
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MSCI’s benchmark for global equity markets rose 1.83% to 589.5, while Europe’s broad FTSEurofirst 300 index added 0.94% to 1,419.84.