SINGAPORE (Reuters) Bonds suffered losses as stocks and commodities plummeted on Thursday in anticipation of a large loan and large spending by the Democratic government that boosted growth following elections the party gave to the US Congress .
The U.S. Treasury had the strongest delivery months after the Democrats’ victories in two games in Georgia gave them close control of the Senate, leading to the election of Pres. Joe Biden has strengthened his agenda to succeed.
Risk sentiment was temporarily dampened by images of President Donald Trump’s supporters storming Capitol Hill, but S&P 500 futures rose 0.6% and Nasdaq 100 futures rose 0.8% in the Asian session as order recovered. is. FTSE futures rose 0.4% and EuroSTOXX 50 futures up 0.2%.
Across Asia, large economically exposed equities led to gains. The chipmakers Samsung and SK Hynix have brought the South Korean Kospi to a record high. Miners Rio Tinto and BHP rose to overall peaks.
MSCI’s broadest index of Asia-Pacific stocks outside Japan rose 0.7% and the Japanese Nikkei rose to 2% to reach its highest level since 1990.
“It’s basically a re-inflation trade,” said Mathan Somasundaram, head of Sydney-based research firm Deep Data Analytics, saying Democrats were surprised by most investors and “changed a lot”.
“While it has a razor-sharp margin, it gives Democrats a two-year window (to pursue their agenda),” he said. “Anything that benefits from rising prices will do well … if you look at the policies they are trying to go through, it’s about printing (money for) Main Street and not Wall Street.”
The sale of bonds on Wednesday pushed yields on the 10-year-old U.S. treasury up more than 1% for the first time since March. It rose to 1,0510% on Thursday. [US/]
The US dollar has weakened as the result has become clearer, as currency traders expect large and growing US trade and budget deficits will outweigh the discount. [FRX/]
The dollar hit a low of nearly 1.349 against the euro at $ 1.2349 and moved near the level on Thursday. It has also disappeared in recent perennial pickups against the Aussie, Kiwi and Swiss francs.
CAPITOL CHAOS, CHINA CRACKDOWN
The exuberance is tempered by some technology stock sales, as investors expect the sector to face taxes and regulations, and by disturbing scenes of protesters storming the Capitol to disrupt the certification of Donald Trump’s election defeat.
Wall Street highlighted the climax of the session when police evacuated lawmakers and struggled for more than three hours to clear the Capitol of Trump supporters.
“What gives us a little break is that the economy is still very fragile, and I think it’s unlikely that the Democrats are going to be as easy as the markets are trying to predict some of these policies,” Tim said. Chubb, chief investment officer at Wealth Advisor Girard in Pennsylvania.
Congress has since convened again to resume election certification, where it quickly became clear that Republican legal representatives’ objections to Trump’s victory over Biden in the battlefield would be overwhelmingly rejected.
Meanwhile, U.S. repression of Chinese companies appears to be deepening, with sources telling Reuters that the Trump administration is considering extending investment bans on Alibaba and Tencent.
Shares in both fell more than 4% in Hong Kong and shares in three Chinese telecommunications companies that the New York Stock Exchange finally decided to remove after a week of flip-flopping also fell sharply.
Oil prices soared near a ten-month high and soared in the wake of a production cut by Saudi Arabia. Brent crude futures rose 0.7% last year to $ 54.69 a barrel and US crude futures rose 0.9% to $ 51.07 a barrel. [O/R]
Gold was steady at $ 1,920 per ounce and a bitcoin firm after hitting a new record high of $ 37,800.
Reporting by Tom Westbrook in Singapore. Additional reporting by Joori Roh in Seoul and Imani Moise in New York; Edited by Sam Holmes, Jane Wardell and Lincoln Feast.