Morning Report – Wednesday 6th January
The Georgia state senate run off is too close to call in the early hours of the morning in the election that will determine the partisan control of the Senate. Democrat Raphael Warnock looks to have won his race, while Jon Ossoff clings to a narrow advantage.
The Electoral College will officially confirm Joe Biden as President of the United States later today when Congress meets to certify the vote. Despite pressure from Donald Trump, the certification will go on as planned and means that he can no longer contest the result via official channels.
The pound is higher against the dollar and unchanged against the euro in trading this morning. Rishi Sunak has pledged further support of £4.6bn for businesses as data showed 1 in 50 people in the U.K have the virus and the country entered its third national lockdown. Bank of England Governor Andrew Bailey is set to be questioned on financial stability later today, which will be of little interest to markets.
The euro is higher against the dollar in early morning trading today. The trading bloc continues to struggle with Covid-19, and Germany extended its lockdown yesterday until the end of January. Composite PMI data for December is due this morning and will likely show a small uptick in economic activity from lockdown in November, but this is already out of date.
The dollar is lower against a basket of major currencies however remains unchanged against the Japanese Yen. The Fed will release their FOMC minutes today so investors can pour over what was discussed when they decided to extend debt purchases in December. The second Georgia Senate seat will be confirmed later today, and if it goes blue, Democrats have complete control of the House and Senate.
US equities retreated from record highs as investors are contemplating the implications of how a Democrat victory will affect businesses. Asian equities were mixed at the open. The US 10-year treasury yield rose past 1 percent for the first time since March while oil prices also increased.
Main Economic Data/Central Banks/Government (All times GMT)
7:45 a.m.: France Dec. CPI, Consumer Confidence
8:15 a.m.: Spain Dec. Composite, Services PMI
8:50 a.m.: France Dec. Composite, Services PMI
8:55 a.m.: Germany Dec. Composite, Services PMI
9:00 a.m.: Euro-Area Dec. Composite, Services PMI
9:30 a.m.: U.K. Dec. Composite, Services PMI
10:00 a.m.: Euro-Area Nov. PPI
1:00 p.m.: Germany Dec. CPI
2:00 p.m.: BOE’s Bailey, Woods, Kashyap, Kohn questioned by committee
3:30 p.m.: U.S. EIA Crude Oil Inventory Report
U.S. Congress meets to certify winner of the presidential election