Markets Watch

Three ways Biden's White House will drive markets

He's set to pass relief package and spend on green initiatives, health, infrastructure

BOOST IN U.S. GOVERNMENT SPENDING It will support stocks, credit and commodities as spending hike is set to accelerate US post-pandemic recovery. PHOTO: AGENCE FRANCE-PRESSE 'CYCLICAL' STOCKS TO OUTPERFORM Mr Joe Biden's policies are set to benefit f
1. BOOST IN U.S. GOVERNMENT SPENDING: It will support stocks, credit and commodities as spending hike is set to accelerate US post-pandemic recovery. PHOTO: AGENCE FRANCE-PRESSE
BOOST IN U.S. GOVERNMENT SPENDING It will support stocks, credit and commodities as spending hike is set to accelerate US post-pandemic recovery. PHOTO: AGENCE FRANCE-PRESSE 'CYCLICAL' STOCKS TO OUTPERFORM Mr Joe Biden's policies are set to benefit f
2. 'CYCLICAL' STOCKS TO OUTPERFORM Mr Joe Biden's policies are set to benefit firms in the cyclical sectors related to modern infrastructure, clean energy, green investments and materials. PHOTO: REUTERS
BOOST IN U.S. GOVERNMENT SPENDING It will support stocks, credit and commodities as spending hike is set to accelerate US post-pandemic recovery. PHOTO: AGENCE FRANCE-PRESSE 'CYCLICAL' STOCKS TO OUTPERFORM Mr Joe Biden's policies are set to benefit f
3. LESS UNCERTAINTY IN U.S.-CHINA CONFLICT More consistent, predictable actions from the US in pushing for Chinese reforms will reduce the degree of uncertainty and tail risks related to bilateral tensions for businesses, investors and China's policymakers.PHOTO: REUTERS

A new president from the Democratic Party is inaugurated as the United States grapples with multiple concentric crises: a recession of historic proportions, record unemployment, rising wealth inequality and social restlessness.

Having led his party to a sweep of Congress, the new president seeks to implement bold, sweeping policies to address these challenges in his first 100 days, including aggressively boosting government spending to kick-start the economy.

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A version of this article appeared in the print edition of The Straits Times on January 22, 2021, with the headline 'Three ways Biden's White House will drive markets'. Subscribe