• The Democratic ticket of Joe Biden defeated the Republican ticket of Donald Trump to become the 46th US President
• Focus now will be on whether Democrats could take control of both House and Senate, which if materialise, this may increase the chances of an agreement and smooth implementation of another large fiscal stimulus package to support the US economy from Covid-19 outbreak
• We believe renewed US trade talks with China remain the most significant event for the region, including Malaysia

Joe Biden to Become the 46th US President

The US Presidential election 2020 winner has finally been announced, with the Democratic ticket of Joe Biden defeating the Republican ticket of President Donald Trump to become the 46th US President. While Biden won, market observers are still unsure of a Democratic sweep of the House and Senate, which may lead to some uncertainty, especially in the implementation of Biden’s policies.

Despite the US election 2020 uncertainty likely over, the US economy continues to be impacted negatively by the COVID-19 pandemic, and without a large stimulus package being passed quickly, there is still downside risk to the outlook for the economic recovery. As such, we believe the focus will now turn to the outcome for majority of Senate seats, which will be potentially important for economic legislation. If the Democrats were to take control of both House and Senate, this may increase the chances of an agreement for another large fiscal stimulus package to support the US economy from Covid-19 outbreak

Source: Affin Hwang Research - 9 Nov 2020