LONDON, January 5th (Reuters). World stocks on Tuesday struggled with new COVID lockdowns in Europe and Senate runoff competitions in Georgia that could affect new US President Joe Biden’s ability to continue his preferred economic policies.
Wall Street was expected to come extends its worst start to one year since 2016. N and with rising volatility levels, the strong euro and Germany, which the UK was to follow with a lockdown extension, European equities were under pressure. .EU / FRX FTSEurofirst 300
fell 0.5% than London
and the US futures all fell between 0.2% and 0.8%, making the most important world index from MSCI, which tracks almost 50 countries,
flat too. .N
Markets also watched to see if Tuesday’s Georgia runoff would allow Democrats to swap both Senate seats and disrupt what markets viewed as a delicate political equilibrium following the Washington elections in November .
« The result could determine how much leeway Biden has to advance his own agenda, » said Wells Fargo (NYSE:
) Matthias Scheiber, global head of multi-asset solutions at Asset Management.
Markets are likely to « go on » if Republicans keep control of the Senate when they vote, Scheiber said as they respond to a Democratic victory that would make additional fiscal stimulus but also tighter regulation for the energy and technology sectors more likely.
« We saw a pretty mixed market, » he said, adding that investors are after the recent strong rally have also increasingly tried to hedge their equity positions.
Overnight, China raised its official yuan exchange rate by the largest margin since it was pegged in 2005, which helped support demand for other currencies and the MSCI index for Emerging market currencies held near the record high it hit on Monday. EMRG / FRX
In the international offshore market, the yuan rose for the first time since June 2018 to 6.4419 CNH = EBS. It started the week at 6.4944 and has risen more than 12% since May as China’s economy recovered and near-zero US interest rates have made the dollar less attractive.
« It’s a very big step in By any historical standard, « said Ray Attrill, head of FX strategy at National Australia Bank in Sydney. “And I don’t think you can ignore that.”
The soaring euro also rose 0.2% to $ 1.22765
EUR = EBS
after hitting $ 1.231 on Monday.
The British pound also rebounded 0.2% to hit $ 1.3573
After falling the day before after a surge in COVID cases in the UK, he enforced another nationwide lockdown through mid-February. Asia, MSCI’s broadest index for stocks in the Asia-Pacific region outside of Japan
ended at a record high thanks to strong growth in South Korea
and Chinese stocks.
lost 0.4% as the country saw coronavirus infections hit record highs again. Hong Kong, China Mobile
, China Unicom
and China Telecom
rose more than 6% after the New York Stock Exchange suddenly abandoned plans to remove the company’s shares from the list under a US executive order. 500,
were all slightly lower before their restart. .N.
Both Georgia elections are close and the results may not be known immediately, which could lead to repeating the chaotic votes following the US presidential election in November.
The outgoing Republican appeal President Donald Trump, pressuring Georgia’s top election officials to « find » votes to reverse his loss to President-elect Biden in the state, has also unsettled some investors. A possible democratic victory (in Georgia) could raise concerns about tighter regulation, at least in the coming months this could be offset by the expectation of greater fiscal stimulus, « ING analysts wrote in a note.
On the commodity markets waited the fixed-trader oil at a meeting on Tuesday where the major crude oil producers will decide on production volumes for February. OR
Both Brent and US crude oil futures
rose 1.6% to $ 51.90 and $ 48.40 per barrel, respectively.
also rose 0.2% to $ 1,946 an ounce
, which rose 300% over the past year, stabilized at $ 31,500 after a sharp drop the previous day.
BTC = BTSP
JPMorgan said in a research report that « speculative mania » could push Bitcoin to $ 50,000-100,000, although it added that such price levels « would prove unsustainable ».
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