Best week for markets since April

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Stock markets in the US and around the world soared last week, delivering their best week since April. The SP 500, FTSE 100 and Eurostoxx 600 were up by 7.3, 6 and 7 respectively. Before US election results began to be reported on Tuesday night, stocks had made gains on the back of optimistic polling data that raised the possibility of a blue wave, with the Democrats taking the White House, Senate and House of Representatives. The hope there was that Democrat control meant a faster path to a new fiscal stimulus package. However, while Joe Biden has now been confirmed as the new president and the Democrats have retained a majority in the House, control of the Senate is still up in the air and may be until January. That raises the prospect of a socalled goldilocks scenario for investors, with less volatile leadership and an improved chance of stimulus, but a reduced likelihood of tax increases and regulation if the Democrats fail to take the Senate.

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