SINGAPORE (Reuters) – Bonds took care of losses, while stocks and commodities gained on Thursday in anticipation of a large loan and high spending by the Democratic administration, which led to growth following the by-elections that gave control to the Congress party US.
U.S. Treasuries suffered the steepest payoffs in a few months after Democrats’ two-race victories in Georgia gave them tight control over the Senate, strengthening the power of President-elect Joe Biden to move his agenda.
Risk sentiment was temporarily dampened by images of President Donald Trump’s supporters storming Capitol Hill, but S&P 500 futures rose 0.6% and Nasdaq 100 futures rose 0.8% in the Asian session, once with the restoration of order. FTSE futures rose 0.4% and EuroSTOXX 50 futures rose 0.2%.
Across Asia, large economically exposed stocks have led to gains. Chip manufacturers Samsung and SK Hynix set Kospi in South Korea a record. Miners Rio Tinto and BHP have reached all-time highs.
The largest MSCI index of Asia-Pacific equities outside Japan rose 0.7%, and Japan’s Nikkei rose up 2% to its highest level since 1990.
“It’s basically a reflection transaction,” said Mathan Somasundaram, head of research firm Sydney Deep Data Analytics, who added that democratic democracy has been unexpected by most investors and “is changing a lot.”
“Even if it has a thin margin, it gives Democrats a two-year window (to continue their agenda),” he said. “Anything that benefits from rising prices will go well … when you look at the policy settings they’re trying to pass, it’s about printing (money for) Main Street and not Wall Street.”
Wednesday’s bond sale pushed the yield on the US Treasury to 10 reference years by more than 1% for the first time since March. It rose to 1.0510% on Thursday. [US/]
The US dollar has faltered as the result has become clearer as foreign exchange traders consider large and the US trade and budget deficits will weigh heavily on the dollar. [FRX/]
The dollar hit a three-year low of $ 1.2349 and fluctuated near that level on Thursday. It has also disappeared near the recent gutters for several years against the Australian, the kiwi and the Swiss franc.
CHAPTER CHAOS, CHINA CRACKDOWN
The exuberance has been tempered by some sales in technology stocks, as investors expect the sector to face taxes and regulations and disturbing scenes of protesters storming the Chapter to disrupt Donald Trump’s electoral defeat certification.
Wall Street fell from session highs as police evacuated lawmakers and fought for more than three hours to free the Capitol from Trump supporters.
“What gives us a break is that the economy is still very fragile and I think it’s unlikely that Democrats will have as easy a time as the markets are trying to predict by adopting some of these policies,” said Tim Chubb, head of investments in wealth advisor Girard of Pennsylvania.
Congress has since met to resume election certification, where it quickly became clear that pro-Trump Republican lawmakers’ objections to Biden’s victory on the battlefield states would be overwhelmingly rejected.
Meanwhile, a US crackdown on Chinese companies appears to be deepening, sources told Reuters that the Trump administration is considering extending investment bans to tech giants Alibaba and Tencent.
Shares of both fell by more than 4% in Hong Kong, and shares of three Chinese telecommunications companies that the New York Stock Exchange finally decided to eliminate after a week of flip-flopping also fell sharply. .
Oil prices fluctuated by almost a maximum of 10 months, leaving behind the brilliance of production promised by Saudi Arabia. Gross futures rose 0.7% to $ 54.69 a barrel, and US gross futures rose 0.9% to $ 51.07 a barrel. [O/R]
Gold was steady at $ 1,920 an ounce and bitcoin firm after a record $ 37,800.
Tom Westbrook’s report in Singapore. Additional reports by Joori Roh in Seoul and Imani Moise in New York; Editing by Sam Holmes, Jane Wardell and Lincoln Feast.