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  • US 10-year Treasury yields jump for a second consecutive day, S&P 500 Futures fail to keep early Asian gains.
  • Democrats lead in the Georgian senate election polls, US-China tussle, virus woes also play their roles.

Although early exit polls suggest Democrats are leading the Georgian election race, US 10-year Treasury yields and S&P 500 Futures show mixed responses during early Wednesday. While the bond yields jump to the fresh high since March 2020, up 3.5 basis points to 0.99%, S&P 500 Futures reverse the initial gains with 0.44% intraday losses while taking rounds to 3,700 by press time.

As per the latest updates from The Economist’s G. Elliott Morris, based on enough early returns, Democratic candidates Raphael Warnock and Jon Ossoff will win their Senate runoffs in Georgia, giving Democrats control of the US Senate. However, Fox is up for an announcement in a few minutes and will be able to provide a clearer view.

Elsewhere, the Sino-American tension roils the mood as New York Post conveyed China’s reluctance to co-operate on the coronavirus (COVID-19) origin tracing. Also highlighting the tussle is US President Donald Trump’s executive orders to ban business with eight Chinese applications. On the same line are multiple detentions of Hong Kong activists and the New York Stock Exchange’s (NYSE) reconsideration to halt the delisting of three major Chinese telecommunications firms, per Bloomberg.

It should be noted that the UK Times’ news suggesting millions of vaccines to reach Britain soon and the US dollar weakness is something that could be considered as market positive.

Amid these plays, stocks in Asia remain depressed while commodities cheer the US dollar weakness. That said, the US dollar index (DXY) seesaw around 89.55, up 0.09%, by press time. In doing so, the greenback gauge halts the recent recovery moves from the fresh low since April 2018.

Moving on, the final results of Georgian elections will determine who will rule the US Senate and hence become the key for market risks. Also important are chatters over the virus and the US-China story ahead of the North American session when US ADP Employment Change for December and FOMC minutes will be the awaited.