Jan 6, 2021 03:07 GMTFXStreet News
The NZD/USD pair has pulled back from multi-month highs, tracking the decline in the US stock futures. So far, however, Kiwi’s downside has been minimal.
The currency pair is trading largely unchanged on the day near 0.7250, having printed a high of 0.7262 early today. That was the highest level since April 2018.
The futures tied to the S&P 500 are now trading 0.30% lower on the day. The decline has come, with both Democratic candidates in Georgia’s Senate runoff pulling into the lead. That’s somewhat surprising, given that a Democrat-controlled Senate is expected to deliver a more significant fiscal stimulus.
Treasuries Breaching 1% on Democratic Win May Just Be the Start
Bloomberg 1/6/2021 Emily Barrett, John Ainger and Ruth Carson
(Bloomberg) U.S. Treasury yields broke above 1% for the first time since the pandemic-driven turmoil in March, and the selloff may only have just begun should the Democrats secure control of the U.S. Senate.
The 10-year yield, a key global benchmark interest rate, at one point surged close to 10 basis points to more than 1.05% as Democratic victories appeared likely in both Senate runoff elections in Georgia, paving the way for more spending to revive the U.S. economy. Long-bond rates, meanwhile, were on track for their biggest one-day jump since March’s pandemic-related turmoil and investors have already started to dust off reflation trades in anticipation of a so-called Blue Sweep.
The Finance 202: Biden team extends welcome olive branch to K Street washingtonpost.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from washingtonpost.com Daily Mail and Mail on Sunday newspapers.
Stocks Hold Gains After Capitol Chaos Halts Surge: Markets Wrap
Bloomberg 1/6/2021 Rita Nazareth and Claire Ballentine
(Bloomberg) U.S. stocks stabilized in the green, though remained well off session highs after protesters surged into the U.S. Capitol, forcing a lockdown that interrupted certification of the presidential election.
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The S&P 500 trimmed its advance to 0.6% at the close of trading in New York, after rallying as much as 1.5% earlier Wednesday. Equities had been on track for a record, buoyed by speculation that a Democratic control of Congress could unleash a torrent of spending to revive growth. That sparked a reflation trade, with investors pouring into small caps and banks, companies that benefit from an economic rebound. Tech shares lagged behind.
Treasury Yields, Bitcoin And Small Caps Soar; Tech And Dollar Tumble On Possible Georgia Blue Sweep zerohedge.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from zerohedge.com Daily Mail and Mail on Sunday newspapers.