As the first full week of 2021 trading commences, the familiar theme of politics emerges once again. Focus remains on the US as Senate runoffs take place in Georgia. The reason the runoffs are so important is the fact they have the potential to flip the Senate from Republican to Democrat.
Even though it’s not expected, Tuesday’s Georgia Senate runoffs could flip control over to the Democrats. The current standing sees a 52/48 split in favour of Republicans. With 2 seats being contested, it could lead to a 50/50 split which would then give Vice-President Harris the deciding vote. Ballot boxes open tomorrow which should produce a result the following day.
On the data front, US non-farm payrolls will the highlight this week. The pace of job growth is expected to slow with only 245,000 expected to have been added in December. Also on the economic calendar this week are a fresh round of global PMIs (December) which should confirm a solid improvement from previous numbers in November.
Elsewhere, the vaccine rollout currently taking place across the world will no doubt be in the spotlight. Additionally, the UK will also hold attention with it now out of the EU customs union and single market.
8:37am, January 4th 2021
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