ASX to surge on US Congress news as Australian dollar continues rally abc.net.au - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from abc.net.au Daily Mail and Mail on Sunday newspapers.
The old cliché that investors prefer divided government is in need of an update.
Stocks rallied Wednesday after Democrats won one Georgia Senate seat and were poised to take another, though trading ended before the second race was called, delivering control of the Senate to the Democrats. This goes against the conventional wisdom that stocks do best when at least one chamber of Congress is controlled by the party in opposition to the president, preventing any dramatic or radical moves that could unsettle markets.
The S&P 500 ended Wednesday up 0.6% and the Dow Jones Industrial Average rose 1.4% to a new closing high, though that was off the levels it reached earlier in the day before Washington D.C. descended into violence. Perhaps most notably, yields on 10-year U.S. Treasurys rose by .075 points to 1.03%, reflecting higher growth expectations. This gave a boost to banks and other financials, as it will allow them to earn more on loans and investments. Bank of America and Wells F
Bitcoin crosses $35,000 for the first time as trading volume skyrockets to record high
Shalini NagarajanJan 6, 2021, 22:27 IST
Bitcoin crossed $35,000 for the first time on the same day Democrats won the runoff elections in Georgia and took control of the Senate.
US economists suggest that a Democratic Senate would likely lead to another round of large fiscal stimulus, crimping demand for assets like the dollar.
The dollar index fell to a fresh two-year low of 89.29 on Wednesday.
JPMorgan this week predicted bitcoin could stage a monster rally and reach as high as $100,000, driven by the speculative mania.
Bitcoin surpassed $35,000 for the first time on Wednesday as trading volumes in the world s most popular cryptocurrency extended record highs.
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Democratic U.S. Senate candidate Raphael Warnock holds a small rally with young campaign volunteers on election day in Georgia s U.S. Senate runoff election, in Marietta, Georgia, U.S., January 5, 2021.
SAN FRANCISCO (Reuters Breakingviews) - U.S. companies needn’t worry about Georgia’s Tuesday vote. Democrats may eke out a Senate majority after one of their candidates won the special runoff election, and the other is ahead in a race still too close to call. The slim margin would hand more power to moderates like West Virginia’s Joe Manchin on issues like green energy and taxes, offsetting greater regulatory scrutiny of business. Corporate America may just have avoided the worst.
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