Blue Sweep, Reflation Trade, Pro-Trump Mob
Democrats won control of the US Senate with two Georgia victories on Wednesday, giving incoming president Joe Biden control of both Senate and House of Representatives.
The two run-off elections were triggered after no candidate managed to win more than 50% during the Nov 3 election. Banks, materials and energy shares jumped higher this week as investors are now expecting larger stimulus and infrastructure bill to be passed through with a unified Democratic Party.
10y US Treasury yield also hit above 1% since March (yields rise when bond prices fall) as the prospect of more stimulus could feed through inflation. However, President Donald Trump continues to reject his defeat and even stoked anger among his supporters with his baseless allegations, resulting in a violent mob at the US Capitol with protesters roaming the legislative chambers and ransacking lawmakers’ offices....