Equity markets were consolidating on Tuesday and were trying to correct some of their yesterday’s losses as steep selling hit the markets during the US session.

Investors are currently struggling with the uncertainty surrounding the Senate runoffs in Georgia due later Tuesday. These could determine the control of this branch of the US government and thus impact the economic policies incoming President Joe Biden will be able to introduce.

Additionally, more lockdowns and restrictions are incoming as the worldwide coronavirus cases continue to rise steeply. That seems bullish for indices as more money printing needs to follow, although many cyclical businesses will cease to exist. 

Later in the day, the US manufacturing ISM for December is expected to decline slightly to 56.6 from 57.5 previously. However, the employment subindex is seen rising to 50.7 from 48.4 in November. 

In the FX, the USD is sold-off again, with the EURUSD pair trying to break above the 1.23 level, while the USDJPY pair dropped to new cycle lows below 103.00. Real yields are also falling, which is pushing inflation expectations to new cycle highs. 

Source: https://www.axiory.com/market-news/calm-tuesday-so-far

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About Author

Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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