Thursday , June 30 2022

CORRECTIVE – GLOBAL MARKETS – Equities earn weaker US dollars as Democrats gain US home


(”Hikes ta, not düzelt hikes” to read tax, corrects the citation in paragraph 6)

* Stocks are high but Dems keep getting winnings as win House

* Selection results according to market expectations

* Despite the democrats, trade concerns will continue

By Hideyuki Sano

TOKYO, 7 Helmet (Reuters) – Wall Street stocks and Asian shares On Wednesday, Democrats won Wednesday after gaining control of the US House of Representatives, increasing the party's ability to block President Donald Trump's political and economic agenda.

The winning of the Democrats' House is a clear obstacle for the Republicans to pass the law easily through both of the congresses of the Congress, which ignores some of Trump's important economic proposals.

In Asian trade, leading publishers said the Democrats would take control of the Assembly, and the Republicans thought they were holding the Senate.

Although both results are in line with market expectations, the prospect of a political collapse, as a reason why markets do not sell, creates some uncertainty for investors. The dollar weakened against most of its major counterparts.

In the stock markets, the US S & P500 gained 0.3%. MSCI's largest Asia-Pacific equities index increased by 0.3 percent, while Japan's Nikkei gained 1.2 percent.

-It has obviously become more difficult for Republicans, for example, to make additional tax reductions or Dodd-Frank regulations (eg financial institutions), kurum said Tomoaki Shishido, a fixed income analyst at Nomura Securities.

Investor sentiment fluctuated in Asian trade with stocks, and the Dollar waved its fluctuating expectations of holding the Republicans home.

A split Congress puts a brake on Trump's agenda, such as tax cuts or deregulation, and some investors think the Democrats could agree to spend more.

Uz There are still areas of compromise in the area of ​​spending, so we expect more fiscal stimulation even with a divided government. There is also the possibility of reconciliation in infrastructure expenditures. Alty Steve Friedman is a senior economist based in New York with BNP Paribas Asset Management.

Üyor If there are additional financial incentives, it suggests that fiscal policy is more of a wind for the US to grow, and that everything should be equal and supportive for the stock. “

On the other hand, many investors are expecting Trump to continue with a hard line over the tariffs it can take without receiving the approval of the Congress. This keeps the concerns about a trade war between China and the United States alive.

Trump's large tax cut that came into force in December and a spending agreement in February helped the US lift its economy, but broadened the US federal budget deficit.

As a result, Treasury supply is increasing and US bonds are rising.

The election results pushed the 10-year US bond downwards, with an increase of 3,261 percent from the previous year, from the seven-year high level to 3,193 percent. However, the debt market is under pressure in the record volumes of this week's long-term government debt stock.

Oil prices fell 2 percent compared to the same period last year. US crude oil revenue reached the eight-month low, and Washington sanctioned Iran's highest oil buyers and said Iran has sold oil until now. needs.

US West Texas Intermediate (WTI) crude futures traded at $ 61.31, down 16 percent to $ 61.91, down from the 16th of March; a regressed.

The dollar in the foreign exchange market was based on US election results. Against the yen, it was 0.2% lower at 113.23 compared to the previous month and 113.82 yen compared to the previous month.

The euro rose 0.3 percent to $ 1,1467, the British sterling rose 0.3 percent to $ 1,3140 and reached its highest level in three weeks.

Brexit Secretary-General Dominic Raab achieved a day-long gain in the hope of a Brexit deal following anlaş Thumbs Up anlaş during his cabinet meeting.

This helped to recover the pound sterling following statements by a senior member of the Northern Irish Democratic Union Party following statements by the United Kingdom without an agreement from the EU. (Reporting by Hideyuki Sano in Tokyo; additional reporting by Daniel Leussink in Tokyo and Daniel Bases in New York; editing by Sam Holmes)

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