A black man at the White House, the stock exchange in the grey zone
07 November 2008 à 11h31
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The election of the first black president of the United States has not brought about a spectacular effect on financial markets. If Asian indexes are under the spell, the European ones go on dropping. No state of grace for Obama on the stock exchange ?
Obama’s followers are not the only ones to make the most of the victory of the Democrat candidate. Most of the Asian financial markets took off when they learned the news. Besides, they didn’t wait for the senator for Illinois’ acceptance speech to record a rise in their rate.The Nikkei closed on a 4.46% upswing in Tokyo while Hong Kong went up 3.67%. At the same time, Sydney, Seoul and Shangai gained between two and three points.
The reason for this euphoria ? This election put an end to the doubts of investors and let them hope for a quickening of reflationary measures. Barack Obama has promised to release fifty billion dollars for a great city engineering plan. The senator for Illinois has also pledged to implement a tax reduction of 3,000 dollars for each job created in the United States. Lastly, the new president wants to draw up a 60 billion dollar revival plan. Those policies reassure the stock exchange.
Confidence doesn’t change anything
However, the good results of Asian markets or the NYSE ones (which recorded a rise in the Dow Jones of 3.28%) don’t toll the knell of the financial crisis. The confidence, which has emerged from Obama’s election, doesn’t change anything. Why ? Because the new president of the United States is going to face the most important economic crisis that the world has ever been through. The stock exchange needs more than charisma to raise its head, and it has more confidence in a decrease in the Fed’s interest rate than in campaign speeches.
A pragmatism that explains the reason why European financial markets have not been influenced by American enthusiasm: at midday, Paris, Berlin and London were down of more than 2%. So were the Gulf markets…
In the face of gloomy reality, may Obamania have found its bounds?
Obama’s followers are not the only ones to make the most of the victory of the Democrat candidate. Most of the Asian financial markets took off when they learned the news. Besides, they didn’t wait for the senator for Illinois’ acceptance speech to record a rise in their rate.The Nikkei closed on a 4.46% upswing in Tokyo while Hong Kong went up 3.67%. At the same time, Sydney, Seoul and Shangai gained between two and three points.
The reason for this euphoria ? This election put an end to the doubts of investors and let them hope for a quickening of reflationary measures. Barack Obama has promised to release fifty billion dollars for a great city engineering plan. The senator for Illinois has also pledged to implement a tax reduction of 3,000 dollars for each job created in the United States. Lastly, the new president wants to draw up a 60 billion dollar revival plan. Those policies reassure the stock exchange.
Confidence doesn’t change anything
However, the good results of Asian markets or the NYSE ones (which recorded a rise in the Dow Jones of 3.28%) don’t toll the knell of the financial crisis. The confidence, which has emerged from Obama’s election, doesn’t change anything. Why ? Because the new president of the United States is going to face the most important economic crisis that the world has ever been through. The stock exchange needs more than charisma to raise its head, and it has more confidence in a decrease in the Fed’s interest rate than in campaign speeches.
A pragmatism that explains the reason why European financial markets have not been influenced by American enthusiasm: at midday, Paris, Berlin and London were down of more than 2%. So were the Gulf markets…
In the face of gloomy reality, may Obamania have found its bounds?
