During the Asia-Europe session today, the U.S. dollar index fell slightly and is now trading at 89.69; investors are concerned about the Georgia senator election, and the market began to bet that the Democratic Party will win the two Senate seats. This is conducive to the launch of a large-scale stimulus plan and drags down the dollar. Weakened further. However, the blockade caused by the epidemic has caused market panic to rise, which limits the dollar's downside.
Spot gold rebounded after a slight decline and is currently trading at around $1,940 per ounce. Although the high position was sold off by some profit-taking, the panic caused by the blockade made investors continue to favor safe-haven gold. The epidemic caused the United Kingdom and Japan to implement blockade measures again. The rising panic sentiment caused investors to sell stocks one after another, and the real yield of the 10-year US Treasury bond fell to a historical low. The uncertainty caused by the Georgia Senate election on January 5 and the joint meeting of Congress on January 6 also provided some momentum for gold, but at present we need to be wary of the profit settlement caused by overbought.
In terms of crude oil, U.S. crude oil fluctuated slightly and is currently trading at US$47.56 per barrel; the overseas new crown epidemic is still getting worse, and market risk sentiment is generally recovering. There may be more travel restrictions, which will increase the short-term downside of oil prices. risk. OPEC+ oil-producing countries have diverged on the issue of further increasing production from February. Some countries are worried that the new crown blockade will hit demand, while Russia and Kazakhstan said that the recovery in demand justifies the increase in production. The organization will continue to meet on Tuesday to discuss, and today continues to focus on the OPEC+ ministerial meeting.
Five OPEC+ oil-producing countries sources said that OPEC+ oil-producing countries had differences on the issue of further increasing production from February. Some countries are worried that the new crown blockade will hit demand, while Russia and Kazakhstan said that demand recovery proves The increase in production is reasonable.
After three hours of debate in the online conference, OPEC+, which is composed of the Organization of Petroleum Exporting Countries (OPEC) and other oil-producing countries including Russia, made the unusual decision to advance the negotiations to the next day. The talks are scheduled to resume at 22:00 Beijing time on Tuesday.
Two OPEC+ sources said that at the meeting, Russia and Kazakhstan supported the increase in production, while Iraq, Nigeria and the United Arab Emirates proposed to maintain stable production.
The day before, OPEC Secretary General Barkindu issued a warning to OPEC+ experts on the downside risks facing the oil market. On Monday, Saudi Energy Minister Prince Abdulaziz stated that although the market environment is generally optimistic, OPEC+ should remain vigilant and cautious because fuel demand is still fragile and the new mutation of the coronavirus is unpredictable.
The U.S. Senate and House of Representatives will certify the voting results of the Electoral College on Wednesday and determine the winner of the November presidential election. A group of Republican congressmen and more than 10 Republican senators plan to challenge the electoral college vote, turning this usually routine procedure into a compelling drama, which has caused a rift in the Republican Party. The next few months It may be difficult to bridge.
Eleven Republican senators headed by Texas State Senator Ted Cruz asked for postponement of full certification and a 10-day "urgent review" of the Electoral College's voting. Representative Mo Brooks of Alabama plans to oppose the electoral college vote in six battlefield states that Biden won, and said more than 50 House Republicans will join or support his efforts. The objection can only take effect if both houses of the Senate and the House of Representatives accept the objection. But the hope of success is slim. Even in the Senate, the number of Republicans who have admitted Biden's victory is enough to overturn dissent.
Trump has launched a challenge. The vote in both houses will require Republican congressmen to publicly stand in line, whether to support the electoral college voting results or choose to support Trump. Several Republican senators have already expressed their opposition to challenging the Electoral College, including Mitt Romney of Utah, Pat Toomey of Pennsylvania and Lisa Murkowski of Alaska.
Since Georgia's Senate runoff also determines the difficulty of Biden's further stimulus plan in the future, market attention is high, and investors need to pay attention to changes in market sentiment.