- S&P 500 Futures rise for second consecutive day as markets await Georgia election results.
- Early exit polls highlight too close to call results.
- US-China stories, vaccine news offer intermediate entertainment amid a light calendar in Asia.
S&P 500 Futures rise to 3,733, up 0.40% intraday, during early Wednesday. The risk barometer benefited from the hopes of the coronavirus (COVID-19) vaccines and upbeat US PMI data the previous day. However, bulls are cautiously optimistic by press time ahead of the key US election results and back the risks off-late.
While the New York Times initially suggested “flip a coin” to forecast the results of both Georgia Senate elections, recent updates indicate a big reversal in favor of Democrats to 59-44 counts. Additionally, markets silently anticipate Democratic victory and the much-awaited stimulus to stay positive.
Read: Georgia voters evenly split over who should control US senate
Also on the positive side are the UK Times updates suggesting millions of covid vaccines reach Britain soon. During the previous day, the US Food and Drug Administration (FDA) conveyed a 95% success rate for leading covid vaccines.
On the contrary, US President Donald Trump signed executive orders to stop doing business with eight Chinese applications. Earlier, the New York Post quoted World Health Organization’s (WHO) Director-General Tedros Adhanom Ghebreyesus while conveying that China is blocking investigations that probe into origins of the coronavirus (COVID-19). Furthermore, dozens of Hong Kong activists are said to be detained on Wednesday morning in Asia on various charges. Additionally, Bloomberg mentioned, “The New York Stock Exchange is reconsidering its decision to halt the delisting of three major Chinese telecommunications firms after Treasury Secretary Steven Mnuchin told the Big Board he opposed its shock announcement to grant the companies a reprieve, said three people familiar with the matter.”
Against this backdrop, stocks in Asia-Pacific remain mildly bid whereas the US 10-year Treasury yields rise 1.2 basis points to 0.97% by press time.
Looking forward, global markets will pay close attention to the Georgian election results and cheer Democratic victory. It should be noted that China’s Caixin Services PMI for December, expected 51.00 versus 57.5 prior, coupled with headlines relating to the Sino-American tussle and covid will also direct the moves.
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