Senate returns, tech boom in Asia, AstraZeneca vaccine – What’s new in the markets


By Geoffrey Smith – The Senate meets again and may or may not vote on increasing direct payments in the recent stimulus bill to $ 2,000 from $ 600. The House of Representatives passed the motion on Monday. US stocks are expected to build on yesterday’s records, and UK stocks are booming as London reopens for the first time since the Brexit deal was struck. The API later publishes US oil inventory data. Here’s what you need to know about the financial markets on Tuesday, December 29e.

1. Senate returns amidst stimulus speculation

The U.S. Senate is expected to meet again, a day after the House of Representatives approved a motion to increase direct payments to households under the $ 900 billion stimulus bill from $ 600 billion to $ 2,000.

The Senate has yet to schedule a vote on the matter, but Senator Bernie Sanders has threatened to filibuster a separate motion to overturn President Trump’s veto on the recent defense spending bill unless that a vote on higher stimulus checks is also not expected.

Some Senate Republicans have expressed support for the increase in payments, fearing the refusal to do so could cost the party the run-off election in Georgia on Jan.5.e. These votes will determine control of the Senate for the next two years.

2. Nikkei hits 30-year high, Kosdaq all-time high as Chinese tech gets nervous

Japan hit a 30-year high and South Korea’s technology index hit a new high, largely in response to moves in US stocks on Monday.

However, there were also signs of money turning in Chinese tech stocks following the latest regulatory action against Ant Group. The Tech Index had fallen 4.3% on Monday on fears that the crackdown on the Ali Baba (NYSE đŸ™‚ founder Jack Ma could also spill over into the rest of an industry that was among the hottest in the world in 2020.

Bloomberg earlier reported that Ant Group was considering creating a holding company that would be regulated like a bank, a move that would mark a major setback after years of exploiting loopholes in Chinese law to develop some of the world‘s largest management firms. assets and insurance of the country.

3. US stocks should open to new highs

US stocks are expected to open to new highs as the low volume amplifies the effect of the news flow that encourages speculation on increased fiscal stimulus.

As of 6:15 a.m.ET (11:15 a.m. GMT), were up 140 points, or 0.5%, while contract and contract were both up 0.4%. All three cash indices had set new record highs on Monday.

The yield on the Treasury bill was flat at 0.94%, while the, which tracks the greenback against a basket of advanced economy currencies, fell 0.4% to 89.963, testing the most 32-month low it hit earlier in December.

4 UK stocks skyrocket on Brexit deal; AstraZeneca / Oxford vaccine can be approved later

British stocks surged higher when the London market reopened for the first time since the UK and the EU concluded their free trade deal just before the Christmas break.

At 6:15 a.m. ET, the indices and midcaps were both up more than 2%, while the indices also advanced on signs that foreign investors are starting to rebalance an underweight position for more than four years. years.

Adding to the positive sentiment, reports that UK health regulators may approve the Covid-19 vaccine developed by AstraZeneca (NASDAQ đŸ™‚ and the University of Oxford as of today. The approval would come at a time when the virus is spreading faster than ever in the UK, which has prompted local media to speculate that the government will need to develop a new level of even tougher lockdown measures for the put under control.

5. Oil exceeds API data

Crude oil prices have regained some momentum amid data from the Commodity Futures Trading Commission showing a sharp increase in speculative long positions in commodities, both agricultural and industrial.

As of 6:30 a.m. ET, U.S. futures were up 1.3% to $ 48.22 a barrel, while the international benchmark was up 1.3% to $ 51.55 a barrel .

The level of speculative net long positions in crude rose last week to its highest level since August, at nearly 526,000 contracts.

The American Petroleum Institute will release its weekly estimate of 4:30 p.m. ET as usual.


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