The election results in Georgia will determine whether the Democrats or Republicans control the Senate
Wall Street stocks slid from all-time highs and finished sharply lower on Monday, as investors proceeded to profit-taking amid upcoming runoff elections in Georgia. The persistent worries grow about surging coronavirus cases in the country added to the downbeat tone during the first trading session of the year. The S&P 500 fell 1.48%, the Dow Jones Industrial Average shed 1.3%, while the tech-heavy Nasdaq Composite lost 1.5%.
Asian equities were mixed on Tuesday amid uncertainty about Senate runoffs in Georgia. The election results will determine whether the Democrats or Republicans control the Senate. Japan’s Nikkei 225 edged 0.37% lower in morning trading, as the government was considering declaring a state of emergency this week to help curb the spread of infections. Australia’s S&P/ASX 200 slipped 0.03%. On the positive side, South Korea’s Kospi gained 1.57%, Hong Kong’s Hang Seng added 0.64%, while the Shanghai Composite edged 0.73% higher.
In Europe, stocks opened mixed as market players digested better than expected German retail sales data along with political uncertainty in the United States and rising coronavirus cases. Retail sales rose 1.9% in November (markets had anticipated a contraction), while the number of jobless fell a seasonally-adjusted 37,000 year on year in December.
Meanwhile, the dollar erased yesterday’s losses but failed to extend the recovery and came under renewed pressure on Tuesday despite lingering concerns over rising coronavirus infections. As such, EURUSD has come across the 1.2309 resistance once again thought managed to hold above the 1.2200 handle during the correction. The euro stays buoyed in a strong bullish trend, having derived local support from strong German data. So, the pair could refresh long-term tops after a pause and turn the 1.2300 figure into support.
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