The outcome of the Georgia runoffs has seen the Democrats take control of the Senate for the first time in 6 years. This now gives them control over the 3 key areas: House of Representatives, the Senate, and the White House for the first time since 2009. Financial markets endured an exciting day of price action, which broadly saw a weaker US dollar and stronger equity markets. US government bonds saw a big sell-off as the democrats are perceived to be looser financially.
Yesterday’s economic data painted a gloomy picture. Global services PMIs were almost all weaker than forecast, including the UK’s print, which came in sub 50, indicating contraction within the sector. US December private payrolls saw a decline of 123,000 instead of a forecasted gain of 60K. Federal Reserve meeting minutes from their gathering last month showed a willingness to increase asset purchases, cementing the central bank’s overall dovish stance.
Today sees UK construction PMI, eurozone inflation & consumer confidence numbers; over in the US, initial jobless claims and ISM non-manufacturing data will feature. Many will be keeping a close eye on global infection rates which are rising very sharply at present.
8:28am, January 7th 2021
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