Daily Briefing: A 'blue sweep' after all?



© Reuters. Democratic U.S. Senate candidate Raphael Warnock speaks on his campaign’s Youtube account

By Dhara Ranasinghe

LONDON (Reuters) – Georgia… say no more about what is driving world markets. Democratic challenger Raphael Warnock has won a hotly contested U.S. Senate race in the state over Republican incumbent Kelly Loeffler, TV networks and Edison Research are projecting.

With a second contest still undecided, which party will control the chamber is up in the air. Yet markets appear to have to have made up their mind, bracing for a Democrat win that could pave the way for a big fiscal boost in the months ahead.

While stocks are down and Wall Street futures indicate a weaker opening, expectations of a fiscal boost — and reflation — are most pronounced in U.S. Treasury markets, where 10-year yields have pushed above 1% for the first time since March, and the yield curve us at its steepest since 2017. European bond yields are tracking higher too in their wake.

meanwhile traded above $35,000 for the first time, rising to $35,879 and extending a rally that has seen the digital currency rise more than 800% since mid-March.

A deluge of economic data will give markets more to chew on; French December inflation data and services PMI numbers for major European economies.

The US ADP (NASDAQ:) employment report will be watched closely ahead of Friday’s non-farm payrolls report.

Key developments that should provide more direction to markets on Wednesday:

– Georgia Senate races that will decide fate of Biden’s agenda too close to call

READ  Mnuchin says US-China trade talks were 'constructive'

-Andrew Bailey, the head of the Bank of England, speaks to the Treasury Select Committee at 1400 GMT.

– Oil hits 11-month high after Saudi Arabia pledges voluntary output cut

-Germany will issue 5 billion euros of 10 year Bunds; UK to sell 3 billion pounds in 10-year gilts

– British baker Greggs slowed the rate of sales decline caused by COVID-19 in Q4

-Trump places curbs on eight Chinese apps including Alipay. But the New York Stock Exchange may reconsider plans to allow three Chinese telecom firms to remain listed.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here