This content was published on November 24, 2020 – 11:22

(Bloomberg) — Global stocks advanced for a second day as investors cheered the start of U.S. President-elect Joe Biden’s formal transition and the prospect for more economic stimulus.

Energy stocks led the Stoxx 600 Index higher, with travel companies and banks also notching gains. EasyJet Plc and International Consolidated Airlines Group SA rose after England planned to cut its quarantine period for arrivals from high-risk countries.

Haven assets were broadly weaker, while Bitcoin extended its searing rally, surpassing $19,000 for the first time since 2017.

Stock markets globally trended higher after the General Services Administration acknowledged Biden as the apparent winner of the presidential election. The move reduces political uncertainty in the U.S., giving Biden and his team access to current agency officials, briefing books, some $6 million in funding and other resources.

“Markets love certainty and the move by Trump overnight partially removes ambiguity over the presidential succession,” Jeffrey Halley, a senior market analyst with Oanda Asia Pacific Pte, wrote in a note. “A Biden administration is expected to be much less isolationist, with hopes that the U.S. will reengage on global trade and improve relations with China.”

A combination of good news on a Covid-19 vaccine and reports that former Federal Reserve Chair Janet Yellen could be named as the next Treasury Secretary are giving investors more confidence to pile on risk. That’s fueling the rotation out of defensive technology stocks and into assets that have been hardest hit by the pandemic, such as airlines and energy producers.

Wall Street is also viewing a possible Yellen appointment as reason to count on more economic stimulus. She recently said the recovery will be uneven and lackluster if Congress doesn’t spend more to fight unemployment and keep small businesses afloat.

In other markets, gold dropped to a four-month low and the dollar weakened against its major peers.

In New Zealand, the government proposed adding home prices to the central bank’s remit to rein in an overheating property market. The move has prompted investors to reduce bets on lower interest rates, pushing the kiwi to the highest level since June 2018.

In Germany, the operator of the DAX index announced the biggest overhaul since the index’s inception in 1988. The number of members will increase to 40 from 30 and new quality criteria will be imposed on both existing and prospective members.

Here are some key events coming up:

  • Minutes of the most recent Federal Open Market Committee meeting are due Wednesday.
  • U.S. jobless claims, GDP and personal spending data come Wednesday.
  • U.K. expected on Wednesday to deliver the government’s spending plans for next year.
  • Thursday sees a policy decision and briefing from the Bank of Korea.
  • U.S. celebrates the Thanksgiving holiday on Thursday.
  • The week ends with Black Friday, the traditional start of the U.S. holiday shopping season.

These are the main moves in markets:

Stocks

  • Futures on the S&P 500 Index rose 0.7% as of 11:21 a.m. London time.
  • The Stoxx Europe 600 Index gained 0.5%.
  • The MSCI Asia Pacific Index climbed 1%.
  • The MSCI Emerging Market Index was little changed.

Currencies

  • The Bloomberg Dollar Spot Index dipped 0.4% to 1,146.12.
  • The euro gained 0.3% to $1.1877.
  • The British pound rose 0.4% to $1.335.
  • The Japanese yen strengthened 0.2% to 104.34 per dollar.

Bonds

  • The yield on 10-year Treasuries climbed one basis point to 0.86%.
  • The yield on two-year Treasuries increased less than one basis point to 0.16%.
  • Germany’s 10-year yield gained one basis point to -0.57%.
  • Britain’s 10-year yield rose one basis point to 0.323%.

Commodities

  • West Texas Intermediate crude gained 1.4% to $42.15 a barrel.
  • Gold weakened 0.6% to $1,811.67 an ounce.

©2020 Bloomberg L.P.