Biden’s win likely to boost Asian Markets
The US election has been positive for the global economy because Biden has been more or less leading in the number of electoral votes. At the moment, Biden is primed for the presidency but Trump is reluctant to step down gracefully leaving US indexes flat at closing for Friday’s session. As for STI, the index has been outperforming after last week’s continuous descent. Presumably, STI will continue to rally to the next major resistance at around 2800-2900 if Biden is officially announced the winner and declare that he will work towards more harmonious relationship with other major economies.
STI – Updated Daily Chart
STI is back in the parallel channel marked out a few weeks ago. At the moment, there are multiple resistance points ahead of the index but the long-term consolidation would help to support the upcoming rallying with occasional retracements. As of Friday’s closing, STI is resting just below 2780 resistance and the banks are still providing adequate support for the index.
STI – Updated Weekly Chart
On the weekly chart, STI is still on track to reach the peak of June 2020. Optimism is noted in the market and all counters that were depressed in the past months are starting to recover from their oversold states.
Author’s Call as of 8th November 2020
- STI substantial rebound is partly due to many counters that are oversold last week
- A plausible Biden win will help Asian markets as Biden’s Government will promote stability in the global economy.
- The global economy is still aware the pandemic situation is worsening in Western nations
- Potential correction of the US markets might overflow to STI I the event of a corporate tax hike following Biden’s win
Author’s Call as of 1st November 2020
- Aggressive accumulation of blue-chip stocks that plunged in the past week
- ETFs of STI is a possible option for investors with smaller amounts of capital
- US elections on November 3rd will determine if there would be more selling for the US market
- STI is still showing no signs of recovery, hopefully, last week’s price action was an overreaction
