👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

GLOBAL MARKETS-Democrat Senate win drives stocks higher, bonds lower

Published 07/01/2021, 05:25
Updated 07/01/2021, 05:30
© Reuters.
EUR/USD
-
USD/CHF
-
XAU/USD
-
AXJO
-
JP225
-
GC
-
LCO
-
UK100
-
ESH25
-
CL
-
EU50
-
NQH25
-
US10YT=X
-
KS11
-
TWTR
-
0700
-
MIAPJ0000PUS
-
9988
-

* Wall St slips from session highs after Capitol protests
* Asia equities gain on U.S. stimulus hopes, bonds and
dollar sold
* Tencent, Alibaba slip on possible U.S. sanctions threat

By Tom Westbrook
SINGAPORE, Jan 7 (Reuters) - Bonds nursed losses and stock
markets rose on Thursday in anticipation of a big borrowing and
big spending Democrat administration driving growth, following
runoff elections that gave the party control of both houses of
U.S. Congress.
U.S. Treasuries had suffered their steepest selloff in
months after Democrat victories in two Georgia races handed them
narrow control of the Senate and the power to pass their agenda.
S&P 500 futures ESc1 rose 0.6% and Nasdaq 100 futures
NQc1 rose 0.9% as markets seemed to shake off a late fade that
pulled Wall Street indexes back from fresh record peaks when
chaotic protests in Washington unnerved traders. .N
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.8% to just shy of a record high, led by a
2.6% jump by South Korea's chipmaker-heavy Kospi .KS11 and a
1.8% gain by Australia's miner-and-bank heavy ASX 200 .AXJO .
Japan's Nikkei .N225 rose 2% to its highest since 1990.
FTSE FFIc1 and European STXEc1 futures rose slightly.
"It's basically a re-flation trade," said Mathan
Somasundaram, head of Sydney-based research firm Deep Data
Analytics, who added that the Democrat sweep was unexpected by
most investors and "changes a lot."
"Even though its a razor-thin margin, it gives Democrats a
two-year window (to pursue their agenda)," he said. "Anything
that benefits from rising prices is going to do well...when you
look at the policy settings they are trying to get through, it's
about printing (money for) Main Street and not Wall Street."
Wednesday's bond selloff pushed the yield on benchmark
10-year U.S. Treasuries US10YT=RR over 1% for the first time
since March. It rose as high as 1.0507% on Thursday. US/
The U.S. dollar also sank as the result became clearer
because currency traders reckon that big and growing U.S. trade
and budget deficits will weigh on the greenback. FRX/
The dollar struck an almost three-year low against the euro
EUR= of $1.2349 and hovered near that level on Thursday. It
also fell to multi-year troughs against the Aussie AUD=D3 ,
kiwi NZD=D3 and Swiss franc CHF= .

CAPITOL CHAOS, CHINA CRACKDOWN
The exuberance was tempered by some selling in tech stocks,
as investors expect the sector to face taxes and regulations,
and by unsettling scenes of protesters storming the Capitol to
disrupt certifying Donald Trump's electoral defeat.
Wall Street eased from session highs as police evacuated
lawmakers and struggled for more than three hours to clear the
Capitol of Trump supporters. "What give us a little bit of a pause is that the economy is
still very fragile and I think it's unlikely that Democrats are
going to have as easy of a time as markets are trying to predict
in passing some of these policies," said Tim Chubb, chief
investment officer at wealth advisor Girard in Pennsylvania.
Congress has since reconvened to resume the election
certification. Shares in Twitter TWTR.K slipped slightly after
hours when the social network said it had temporarily locked
Trump's account for violating the platform's rules. Meanwhile a U.S. crackdown on Chinese companies appears to
be deepening, with sources telling Reuters that the Trump
administration is considering extending investment bans to tech
giants Alibaba 9988.HK , BABA.N and Tencent 0700.HK .
Shares in both fell more than 4% in Hong Kong and shares in
three Chinese telecom firms that the New York Stock Exchange has
eventually decided to remove after a week of flip-flopping also
fell heavily. Oil prices hovered near a 10-month high, basking in the
afterglow of a production cut promised by Saudi Arabia. Brent
crude futures LCOc1 were last up 0.7% to $54.69 a barrel and
U.S. crude futures CLc1 rose 0.9% to $51.07 a barrel. O/R
Gold XAU= was steady at $1,917 an ounce and bitcoin
BTC=BTSP firm after making a fresh record high of $37,785.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.