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FTSE 100 set to rise as Biden bounce boosts equity markets

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6.50am: Bright new day

The FTSE 100 is seen on the front foot ahead of Thursday’s open following the inauguration of Joe Biden as the 45th President of the United States, who debuted yesterday with a positive and a reconciliatory first speech.

In London, the FTSE 100 is called around 30 points higher with IG Markets making the price 6,762 to 6,765 with just over an hour to go until the open.

Soundbites aside, it is the expectation that Biden will bring an end to the deadlock over economic stimulus – and hope that it will reverberate through the global economy.

“All of the major US equity markets closed at new record highs, while markets in Europe also had a positive session, as investors absorbed the messaging of a new President, and a Treasury Secretary who promised to “act big”, in testimony to US policymakers the day before,” said Michael Hewson, analyst at CMC Markets.

“This enthusiasm over a new stimulus program is likely to filter into a positive European open later this morning, after the Bank of Japan kept its own monetary policy decision unchanged, ahead of today’s ECB rate decision.”

Overnight on Wall Street, the Dow Jones Industrials Average rose by 257 points or 0.83% to finish Wednesday’s trading at 31,188. The S&P 500 index, meanwhile, added 1.39% to close at 3,851 and the Nasdaq Composite advanced 1.97% to 13,457.

In Asia on Thursday, Japan’s Nikkei 225 index climbed 233 points or 0.82% to 28,756 whilst Hong Kong’s Hang Seng dipped 0.55% lower to 29,796. The Shanghai Composite gained just shy of 1% to 3,615.

Around the markets:

  • The pound: US$1.3706, up 0.38%
  • Gold: US$1,873 per ounce, up 0.12%
  • Silver: US$25.97 per ounce, up 0.31%
  • Brent crude: US$55.98 per barrel, up 0.14%
  • WTI crude: US$53.20 per barrel, up 0.41%
  • Bitcoin: US$34,607, down 2.6%

6.45am: Early Markets – Asia / Australia

Shares in the Asia-Pacific region were mostly higher on Thursday after Wall Street hit record highs as new US president Joe Biden was sworn into office on Wednesday.

China’s Shanghai Composite gained 1.12% while in Japan, the Nikkei 225 rose 0.82%.

South Korea’s Kospi advanced 1.54% but the Hang Seng index in Hong Kong was an exception falling 0.24%.

In India, the BSE Sensex crossed the 50,000 level for the first time on Thursday, with the index last trading about 0.61% higher.

Shares in Australia advanced, with the S&P/ASX 200 closing 0.79% higher.

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Proactive Australia news:

Arafura Resources Limited (ASX:ARU) has completed all metallurgical test-work and associated analysis from an extensive four-year metallurgical pilot program for the Nolans Neodymium-Praseodymium (NdPr) Project in the Northern Territory.

Perseus Mining Ltd (ASX:PRU) achieved half-year gold production of 137,386 ounces, up by 12% on the previous half-year and close to the top end of the production guidance range of 125,500 ounces-139,000 ounces at its three operating gold mines – Edikan in Ghana and Sissingué and the new Yaouré operation in Côte d’Ivoire

Element 25 Ltd (ASX:E25) (FRA:QFP) is moving towards the delivery of a low capital cost, early cashflow stage 1 operation exporting manganese concentrate from its Butcherbird Manganese Project in WA at a time of strong manganese prices and positive market fundamentals.

ioneer Ltd (ASX:INR) (OTCMKTS:GSCCF) (FRA:4G1) is trading higher on the successful conversion of lithium carbonate produced at its pilot plant using ore from the Rhyolite Ridge project in Nevada, USA, into battery-grade lithium hydroxide.

Kingwest Resources Ltd (ASX:KWR) continued a resource definition and exploration drilling program at Menzies Gold Project (MGP) in Western Australia throughout the December 2020 quarter with an additional 116 holes for 11,728 metres completed.

K2fly Ltd‘s (ASX:K2F) acquisition of SATEVA mine geology applications is exceeding expectations and is tracking ahead of target moving into 2021.

Bellevue Gold Limited (ASX:BGL) made strong progress on the project development and exploration fronts during the December 2020 quarter, setting the stage for an important year in 2021.

Artemis Resources Ltd (ASX:ARV) (OTCMKTS:ARTTF) (FRA:ATY) has received strong gold, copper and cobalt assay results from ongoing drilling at its 100%-owned Carlow Castle Gold Copper Cobalt Project in the West Pilbara region of Western Australia.

Lithium Australia NL (ASX:LIT) (FRA:3MW) (OTCMKTS:LMMFF) subsidiary VSPC Ltd has been granted a patent by the European Patent Officer for its process of producing nanostructured metal-oxide products simply and efficiently.

Bardoc Gold Ltd (ASX:BDC) has received wide gold intersections from recent infill and exploration drilling at the Zorastrian and Excelsior deposits in Western Australia that point to growth in the 3.3-million-ounce resource at Bardoc Gold Project.

Mako Gold increases Côte d’lvoire footprint on grant of Ouangolodougou Permit near Barrick’s Tongon

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