Daily Briefing: A 'blue sweep' after all?
Reuters
Published Jan 06, 2021 08:15
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.
Bitcoin 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:ADP) 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
-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.
Get The App
Written By: Reuters
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.