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© Reuters.
By Geoffrey Smith
Investing.com – President Donald Trump Shakes Georgia Ahead of Senate Runoff; UK begins distribution of AstraZeneca-Oxford vaccine; it weakens, driving up commodity prices, and Iran resumes uranium enrichment in defiance of new President Joe Biden.
Here’s what you need to know about the financial markets on Monday, January 4.
1. Trump puts pressure on Georgia
President Donald Trump pressured Georgia Secretary of State Brad Raffensberger to “find” enough votes to overturn the outcome of the state’s presidential election in a phone call that lasted more than an hour, according to the Washington Post and others.
A recording of the post released by the Post shows Trump repeating claims of voter fraud that have already been rejected by Georgia courts and accusing Raffensberger of a crime by reporting an incorrect election result. The votes cast in Georgia were counted three times and confirmed the victory of President-elect Joe Biden by a narrow margin of 11,779.
The immediate significance of the call, and the reports on it, are its effects on likely Republican voters in Tuesday’s two elections for the two Georgia Senate seats. The Republican Party will retain control of the Senate – and its influence over fiscal policy – for another two years if it can retain either seat.
2. UK launches AstraZeneca vaccine; cases remain high
The UK became the first country in the world to use the AstraZeneca (NASDAQ 🙂 (SA 🙂 / Oxford Covid-19 vaccine after health regulators approved it late last year.
The country is battling a sharp rise in new Covid-19 infections, largely due to the presence of a new strain of coronavirus that appears to be more contagious than its original variant. London hospitals have to move patients to areas more than 200 miles away, having reached their maximum capacity in their intensive care units. The Times reported that many schools plan to remain closed at the end of the Christmas break, defying the government’s recommendations to reopen.
UK Prime Minister Boris Johnson warned over the weekend that the country may have to impose what would be its third national lockdown to halt the spread of the disease. Elsewhere in Europe, senior German officials have indicated that the continent’s largest economy will extend its current restrictions until the end of the month, while France added two more hours to the curfew in its worst-hit regions.
3. Stocks should open to new highs
US equity markets are poised to start the new year at record highs as investors continue to consider the short-term challenges of high infection rates around the world and to bet on a broad economic recovery late. of year. year.
O, o and 0.65%, 0.55%, and 0.47% went up.
Stocks likely to come into focus later include Tesla ({{NASDAQ 🙂 (SA :), who said over the weekend that it missed its 2020 delivery target of 500,000, and MGM Resorts (NYSE 🙂 ( SA :), which had an $ 11 billion offer rejected by UK-based Entain, whose technology powers its online BetMGM operations in the US.
4. Research on manufacturing in China and Europe weakens
Manufacturing activity in China and Europe was slightly less strong in December than initially thought: it fell to 53.0, the lowest since August, while it stood at 55.2, below a preliminary estimate of 55, 5. In the UK, the indicator was revised to 57.5, the highest in three years.
On a quiet day for economic news, there will be data on US construction spending for November at noon.
Two voting members of the Federal Reserve, Chicago and Atlanta, are expected to speak at the same time.
5. Dollar weakness, news from Iran increases oil
The weak dollar pushed oil and industrial metals higher, while there were also signs from the Organization of the Petroleum Exporting Countries and its allies OPEC + that current production restrictions will remain in place for another month.
The price rose 1.47% to $ 52.56 a barrel, while it advanced 1.03% to $ 49.02.
Prices were also boosted by reports that Iran had resumed enrichment of uranium, in direct challenge to the new government of President-elect Joe Biden. Iran’s action will make it more difficult for Biden to return to the UN-backed deal that President Trump deviated from before imposing tougher sanctions that slashed Iran’s oil exports.
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