MARKETS on three continents welcomed the outcome of the US election. relieved that President Bill Clinton would be dealing with a legislature controlled by the pro-business Republican Party.
On Wall Street, share prices reversed an initial dip and turned stronger in early trading Wednesday, with the Dow Jones average of blue chip issues gaining 30.19 to 6,111.37 an hour after the opening bell. At the close on Wall Street, the Dow was on 6177.71 a rise of 96.53 or 1.59 per cent on the day.
On the bond market, interest on the benchmark 30-year US Treasury security was at 6.60 per cent, down from 6.58 per cent on Tuesday. Dealers said profit-taking had set in after the market gained ground on Tuesday in anticipation of the election results.
Prices soared in Tokyo and Hong Kong overnight and strong gains were seen on the major European stock markets. Equity dealers in Europe said the market had already factored in Mr Clinton's victory over Republican candidate, Mr Bob Dole and that the focus quickly shifted to the outcome of Congressional elections.
Investors had been worried that Mr Clinton's Democratic Party would also take control of the legislature, raising fears of more active government spending and regulation and a weakened commitment to balancing the budget.
Gains in London were limited by an inflation warning from the Bank of England and the FT-SE, which at one stage was up 25 points, eventually closed up 14.6 points on 3935.7. European stock markets, however, responded strongly with solid gains in Frankfurt and Paris. The Irish stock market, which tends to take a lead from London rather than the continent, closed up just under 0.5 per cent on the day.
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