Global Stocks and US Futures Rise Early on Election Day

Hong Kong / New York (CNN Business) -

Global stocks and US futures are rising Tuesday as investors gear up for the US presidential election.

The overnight rise follows a strong performance Monday on Wall Street, where investors expect Democratic candidate Joe Biden to prevail over Republican President Donald Trump, and for Democrats to retake the Senate and maintain control of the House.

Although Republican policies tend to favor stocks, investors are eager for more fiscal stimulus as the United States grapples with the coronavirus pandemic.

Investors predict that a "blue wave" of Democratic victories would increase the chances that a comprehensive stimulus deal will pass in the winter.

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Pre-market indicators showed Wall Street was heading for its second straight day of gains after stocks posted their worst week since March.

Dow (INDU) futures rose 220 points or 0.8%.

S&P 500 (SPX) futures were up 0.6% and Nasdaq (COMP) futures were up 0.4%.

"The outcome [of the election] is likely to have a major impact on the scale of the [US coronavirus stimulus package] plan and its timing," wrote David Madden, a market analyst at CMC Markets, in a report. research on Tuesday.

"It is possible that the stock traders were willing to settle their scores before the vote took place."

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Asia is also likely to get a boost after the Reserve Bank of Australia cut interest rates to a record low of 0.1%.

The widely expected move was intended to help the economy recover from the coronavirus pandemic.

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Asian markets

Australia's S & P / ASX 200 added 1.9%.

While China's Shanghai Composite (SHCOMP) advanced 1.4%.

The Japanese markets were closed for being a holiday.

South Korea's Kospi (KOSPI) gained 1.9%, the index's best day since June.

Hong Kong's Hang Seng Index (HSI) rose 2%, putting it on track to its best day in about three weeks.

The Hang Seng may also be improving as investors prepare for the first day of trading at Ant Group, Jack Ma's fintech firm, later this week, said Jeffrey Halley, senior market analyst for Asia Pacific. in Oanda.

The initial public offering, which is taking place in Shanghai and Hong Kong, is the largest on record.

Ant shares begin trading Thursday in Hong Kong.

Anneken Tappe contributed to this report.

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