One such distrust of polls is that the late move to the Democrats in the Georgian Senate election was treated with skepticism on Wall Street.
So the financial markets reacted to the news that Raphael Warnock won one of the two Senate rounds in Georgia early Wednesday, with Jon Ossoff leading the other, and the remaining votes counted in Atlanta counties. This puts Democrats in control of an equally divided U.S. Senate, with elected Vice President Kamala Harris getting an equal vote.
10-year treasury TMUBMUSD10Y,
pushed over 1% in anticipation of higher spending. The dollar fell by EURUSD,
trading over $ 1.23. Russell 2000 RTY00 low capitalization futures,
increased, while the S&P 500 futures ES00 broader,
and Nasdaq-100 NQ00 futures,
fell, with tech giants, including Facebook FB,
Owner Google Alphabet GOOG,
and Microsoft MSFT,
lower trading in premarket action on regulatory action concerns Funds traded on the stock market in the emerging and stock market increased in German trade.
“While these likely victories raise the level of political uncertainty and certain sectors of the US capital market may perform poorly (healthcare, technology for example), the macro implications of these election results are clearly positive,” Derek said. Halpenny, head of global market research at MUFG Bank in London. “There is now a chance for more stimulus controls for US households ($ 2,000 instead of $ 600) and an increased prospect of more fiscal stimulus support, in general, in the future.”
“If the Democrats manage to hurt Georgia, then a key difference this time, in my opinion, is that many of the same Democratic players who were there in 2009 would probably use the latest opportunity to advance higher tax spending. supporting economic recovery. In a more pronounced economic recovery, we would expect an even greater increase in Treasury rates, a tightening of differences in municipal and corporate bonds, a weakening of the dollar and a better performance of stock and emerging market stocks. “, added Brian Levitt, global market strategist at Invesco, in a note before the results.
The growing yield curve – the gap between 2- and 10-year yields has widened to the widest since 2017 – should help the banking sector. Shares of JPMorgan Chase JPM,
has grown in the premarket trade.
A big question will be whether there will be a desire to raise taxes on corporations or wealthy Americans, an action backed by President-elect Joe Biden.
“Although a ‘blue’ result with a democratic gain in Georgia may revive a discussion about the upcoming US tax increases, we believe it is unlikely that new Treasury Secretary Janet Yellen will pursue policies that could stifle the US economic recovery. Given its steep inclination, it is likely to focus on more stimulus, ”said Holger Schmeiding, chief economist at Berenberg Bank.
Buzz
Vice President Mike Pence will certify the electoral balance sheet of the Electoral College, as President Donald Trump put public pressure on him to overturn the result.
The minutes of the last meeting of the Federal Open Market Committee will be published, as the public comments of various officials in recent days show a split on the issue of bond purchases. The economic calendar also includes the ADP estimate of private sector wages in December, as well as the index of procurement managers in the services sector.
Tesla TSLA,
Its target price rose to $ 810 from $ 540 by Morgan Stanley, which reiterated an overweight call to the electric vehicle manufacturer. Instead, Barclays reiterated its $ 230 price target.
Trump has signed an executive order banning Alibaba’s Alipay BABA,
and seven other Chinese applications.
UnitedHealth UNH,
agreed to buy Change Healthcare CHNG,
at a 41% premium by Tuesday’s close.
Random readings
A university is trying vending machines for COVID-19 tests.
NASA’s new telescope could unravel the secrets of the Big Bang.
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