What does the Biden administration mean for ASX shares? 

With Joe Biden due to take office this week, many investors are wondering what this could mean for ASX shares. Ahead of his inauguration Biden has revealed a $1.9 trillion coronavirus relief plan aimed at combating the pandemic and the economic crisis it has triggered.

In the short term, this additional fiscal stimulus should help bolster the battered US economy, but it has also impacted global share markets. Prices of commodities used in infrastructure projects have rallied since Biden announced the package, while technology stocks have struggled. 

A splurge of issuance in the government bond market is expected, alongside higher inflation. This could prompt the Federal Reserve to increase interest rates earlier than expected.

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