Global stock markets were relishing on Monday the victory of Democrat Joe Biden in the US presidential election, leaving aside the deterioration of the health situation in the United States and Europe.

European markets had been bragging since the opening: around 08:35 GMT, Paris rose by 1.55%, Frankfurt by 1.93% and London by 1.39%.

On the Tokyo Stock Exchange, the flagship Nikkei index, which had already jumped nearly 6% over the whole of last week, closed up 2.12%.

Chinese markets also recorded solid gains on Monday: in Hong Kong the Hang Seng index closed at +1.18%, the Shanghai composite index closed at 1.86% and that of Shenzhen by 2.25%.

On the other hand, futures were largely positive for US indices auguring a euphoric opening there too.

"Stock markets are hoping for more predictability and less volatility," and are showing their "joy, that the four Trump years (are) a thing of the past," said Jochen Stanzl, an analyst at CMC Markets.

"Investors are betting that Joe Biden will once again put more emphasis on international cooperation," he added.

Even if Donald Trump refuses to acknowledge his defeat, the markets continued to rise after having already signed last week strong increases, despite a movement of profit taking over the weekend.

Initially, investors feared a Democratic victory, synonymous with corporate tax hikes and taxes on capital income, but they are now betting on moderate policy measures.

Indeed, the balance of power between Republicans and Democrats that is looming in Congress should severely limit Biden's room for maneuver to enforce the tax changes in his program.

Investors agree to count on the implementation of a stimulus plan in the United States, even if they assume that it will be less ambitious than hoped, and rely above all on the flawless largesse of the  US central bank.

The US electoral battle will now focus on Congress, where the majority in the Senate will be decided in close elections in Georgia in January.

For Vincent Boy, market analyst at IG France, "the strong acceleration of the markets is mainly due to the fact that (Fed boss) Jerome Powell once again showed unwavering support" for the US economy during the monetary policy speech of the US Federal Reserve  Thursday.

Monetary support means the influx of liquidity and very low interest rates, all favourable conditions for massive investments in financial assets, and therefore for the markets to rise.

"Despite the accumulation of various crises in the United States, health, economic, political or geopolitical, investors do not reduce their exposure to risky assets, showing the little correlation between financial markets and reality," notes the expert.

Reassuring indicators also supported the general good mood. Unemployment fell more sharply than expected in October in the United States and the Chinese economy continues to show signs of recovery, including an 11.4% increase in year-on-year October in its global exports.

But the United States, like Europe, is facing record new infections in recent days and the accumulation of new restrictions to deal with this second wave could seriously hide the economic recovery.

The oil market was in tune with the good mood on the equity markets: around 09:20 GMT the price of a barrel of US WTI crude gained 2.69% to $ 38.14 and that of the barrel of Brent from the North Sea advanced by 2.51% to $ 40.44.

No significant reaction on the other hand at the level of currencies: the dollar was stable against the euro and rose slightly against the yen.

The flagship indices in Paris and Frankfurt were entirely in the green.

In terms of values, the automotive sector was doing well on both sides of the Rhine: Volkswagen (+2.58%), BMW (+2.12%), Daimler (+1.92%), PSA (+3.13% to 16.99 euros) and Renault (+2.58% to 23.30 euros).

Semiconductors were at the party, whether Infineon (+2.07%) on the Dax or STMicroelectronics (+3.86%) on the CAC 40.