The New York Stock Exchange is trading lower on Wednesday, with an eye on the two competing seats in Georgia that will determine control of the Senate. For the moment, Democrats have secured one of them and fondle the second, with 97% of the scrutiny completed.
Analysts warn that US tech will not fare well off the reform drive of President-elect Joe Biden, who is one step away from securing control of the US Congress.
Investors are anticipated will move away from growth stocks and they will head towards names that will benefit the most from the stimulus. Also, higher tax rates could hit tech stocks more than the rest of the market. Apple and Facebook fall around 2% in the 'premarket'.
The benchmark performance of 10-year Treasuries, meanwhile, exceeded 1% for the first time since March and the dollar has left a nearly three-year low on the index that measures its performance. Further, the euro has risen to almost $ 1.2350 and the Swiss franc has risen to a six-year record against the 'greenback'.
In the main European squares, the winds of change blowing from the other side of the Atlantic give momentum to the trading floors, as analysts generally assume that a Democrat-controlled Senate would be good for global economic growth. The increases range from 0.7% of the CAC40 to 2% of the Ibex, going through almost 3% in the London FTSE 100.
In Asia, there were widespread falls this Wednesdaywhile investors have kept Chinese tech giants and regional energy companies in the spotlight. The executive order of the outgoing US president, Donald Trump, vetoing transactions in eight Chinese applications has set the compass of the day as it includes WeChat Pay and Ant Group's Alipay. The order will go into effect after the Republican leaves office.