Yazar: Geoffrey Smith
Investing.com – President Donald Trump stirs up Georgia ahead of Senate runoffs; Britain begins distributing AstraZeneca-Oxford vaccine; The dollar is weakening, increasing commodity prices, and Iran will begin to enrich uranium again, posing difficulties for new President Joe Biden.
What you need to know in financial markets on Monday, January 4:
1. Trump pushes Georgia
According to the Washington Post and others, President Donald Trump urged Georgia State Secretary Brad Raffensberger to “find” enough votes to change the state’s presidential outcome in a phone call that lasted more than an hour.
The interview record released by the Post shows that Trump repeated the allegations of election corruption dropped by the Georgia courts and accused Raffensberger of committing a crime by announcing an erroneous result. In Georgia, the votes were counted three times and the victory of Elected President Joe Biden was confirmed by a tiny margin of 11,779.
The importance of the meeting and the reports on it is the possibility that Georgia will influence prospective Republican voters in the runoff for two Senate seats. If they have both seats, the Republican Party will continue to retain control of the Senate and its power over financial policy.
2.As cases increase, UK distributes Astra vaccine
Britain will be the first country to use this vaccine after health authorities approve the AstraZeneca / Oxford Covid-19 vaccine at the end of the year.
Due to the presence of the new species, which is stated to be more contagious than the original, new Covid-19 numbers in the country are increasing rapidly. Hospitals in London now have to transfer patients to areas 300 km away, as they have reached capacity in Intensive Care Units. According to The Times, many schools are planning to remain closed after the Christmas holidays, in violation of government guidelines for reopening.
At the weekend, British Prime Minister Boris Johnson warned that they could implement the third nationwide quarantine to prevent the spread of the disease. In other parts of Europe, Germany’s senior officials pointed out that the current restrictions will be extended by the end of the month, while France extended the current curfews for another two hours in the areas suffering the greatest damage.
3.Stocks will open at new highs
US stock markets are preparing to open for the new year at record heights. Investors continue to examine rising infection rates around the world, betting that there will be an overall economic recovery this year.
It increased by 183 points and rose by 0.6% and 0.4%.
Among the stocks that may be of interest are Tesla (NASDAQ :), who said he missed the 2020 delivery target of 500,000 by a narrow margin, and MGM Resorts (NYSE :), which UK-based Entain rejected his $ 11 billion offer. BetMGM in the USA provides Entain the technological power for online operations.
4. China and Europe manufacturing surveys are weak
Manufacturing activity in China and Europe was weaker than the initial forecast for December: Caixin Manufacturing PMI fell to 53.0 points, its lowest level since August, while IHSMarkit’s Eurozone PMI data compared to the previous forecast of 55.5. has been revised to 55.2. In addition, the UK’s data was increased to 57.5, the highest level in three years, with an upward revision.
November US construction spending data will be on the day, which is calm for economic developments.
Two voting members of the Fed FOMC, Charles Evans from Chicago and Raphael Bostic from Atlanta, will also speak.
5. Dollar weakening, developments in Iran increase oil
While the weakness of the dollar will increase oil and industrial metal prices, there are also signs that the OPEC + block will continue production restrictions for another month.
It dropped 0.5% to 89.54 points, approaching a 30-month low.
On the other hand, it rose by 0.7% to $ 48.80, while it rose by 1.2% to $ 52.81. Prices also received support from reports that Iran has resumed its uranium enrichment process. This is a direct problem for the new President Joe Biden. Iran’s move will make it difficult for Joe Biden to rejoin the UN-backed agreement. President Trump withdrew from the deal before imposing stricter sanctions that drastically reduced Iran’s oil exports.