Europe open: Market cheered by Biden victory, higher US futures

European stocks powered ahead at the opening on Monday after Joe Biden declared victory in the US Presidential election, ending days of uncertainty.

The pan-European Stoxx Europe 600 gained 1.4%. Germany’s DAX was up 1.68%, France’s CAC 40 1.39% and the UK FTSE 100 1.51% as financial markets reacted for the first time to news that Biden had garnered the required 270 electoral college votes to claim the White House, according to unofficial tallies.

Incumbent Donald Trump refused to concede and has pledged to fight the result in the courts, claiming electoral fraud, although his campaign has notably failed to produce any evidence so far.

Futures on the Dow Jones Industrial Average were up 330 points as Wall Street geared up for a strong opening.

The prospect of a divided congress also soothed investors fearful that a new administration would seek to curb US corporate excesses.

"Despite the likelihood of the election result being contested, the fact that Congress will be divided is now being priced in, which is seen as a tailwind for markets since sweeping changes are more difficult to introduce,” said interactive investor analyst Richard Hunter.

“In particular, the previous concerns of higher taxes and less regulatory interference have subsided, while an early boost to the economy from further fiscal stimulus is seen to be on the immediate agenda."

In equity news, UK house builder Taylor Wimpey topped the gainers list after reporting that full-year results would be at the upper end of expectations on better-than-expecting trading in the second half driven by a mini housing boom after the easing of coronavirus restrictions in June.

The news cheered the sector, with peers Redrow, Persimmon, Barratt and Vistry all higher.