Here’s what a Joe Biden victory would mean for ASX shares

What would a possible Joe Biden presidency mean for the share market and ASX shares? Here are some areas to watch going forward
The post Here’s what a Joe Biden victory would mean for ASX shares appeared first on Motley Fool Australia. –

question mark, unsure

As I’m sure we would all be aware of today, the vote counting for the US elections is still underway and unresolved. Neither incumbent President Donald Trump or his Democratic challenger, former Vice President Joe Biden, has yet been officially declared the winner of this week’s presidential election. Saying that, Joe Biden is on track to receive the most votes in the electoral college by the most recent vote counts. As such, it is looking increasingly likely that he will emerge the winner from this most extraordinary of elections, going off of the latest data.

So, if Mr. Biden does emerge victorious, what will a new president mean for global markets, and, of course, the S&P/ASX 200 Index (ASX: XJO) and ASX shares?

According to reporting in the Australian Financial Review (AFR), Joe Biden’s priorities (assuming he is sworn in as President of course) are likely to be focused on the coronavirus, economic recovery and healing the bitter divisions that will inevitably stem from the close election result.

These are all domestic American issues.

Bidenomics for the ASX?

However, the AFR article also notes that climate change and foreign policy will be secondary priorities for a Biden administration. On climate change, the article notes that Biden has stated that “if we don’t get this right, nothing else matters”.

As such, it expects Biden to quickly rejoin the Paris agreement on climate change and “pressure other countries to do more. Australia will be among them.”

That may indicate that a Biden presidency might not be too kind to fossil fuel extractors like BHP Group Ltd (ASX: BHP) and Woodside Petroleum Ltd (ASX: WPL).

The article also notes that a Biden administration’s foreign policy may seek greater engagement with China. It’s no secret that Sino-US relations under President Trump have deteriorated amid trade wars and tariff implementation.

The present relationship Australia has with China is also showing signs of being shaky. Just this week, China announced fresh import restrictions on some Australian goods, after flagging wine importation restrictions earlier in the year.

Although the AFR notes that “China will continue to be a central strategic and economic competitor” to the US, it also expects more “direct hard talking” between Washington and Beijing.

If this relationship thaws, we could see a concurrent thawing of our own relationship with China. This could be good news for ASX shares like Treasury Wine Estates Ltd (ASX: TWE) and other Australian companies exporting to China.

All in all, the article posits that a Biden presidency could bring modest changes in the economic sphere, but a dramatic change in the global diplomatic order. It will be interesting to see how these changes play out for Australia and the ASX.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here’s what a Joe Biden victory would mean for ASX shares appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!