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Storming The Capitol

Storming the Capitol, What happened to the markets?

Storming the Capitol, What happened to the markets?

Storming the Capital: A disastrous historic night in Washington yesterday,
as there were riots for the first time in recent history, chaos, and gatherings in thousands of Trump supporters.

Tension arose when US Vice President Mike Pence,
the speaker of the Senate refused to approve Donald Trump’s request that Joe Biden’s
electoral votes are rejected in disputed states such as Arizona, Georgia, and Pennsylvania.

As a result, several hundred supporters of the outgoing president stormed the Capitol,
the seat of US Parliament, Senate, and House of Representatives.

Pictures of people wearing various fancy dress, taking photos of themselves appeared in halls of Parliament
and in the offices of Congress members including Nancy Pelosi, Speaker of the House of Representatives.

One person was injured and died later in hospital after being struck by bullets.

A curfew was imposed in Washington City to prevent mass gathering.

During clashes with security services, a number of people were injured and dozens were arrested for violating curfew.

Evest follows up all developments in markets after this night that Americans will never forget.


US West Texas crude is over $ 51

Oil prices rose today after a historic night in the United States of America as they are still supported
by a reduction in production by the Kingdom of Saudi Arabia and a decline in oil inventories.

Brent crude recorded $ 45.72 a barrel, rising by 0.77%, while US West Texas Intermediate crude rose by $ 0.93%,
as a barrel was trading at $ 51.10.


Oil prices rose to their highest levels

Oil prices rose to their highest levels since February 2020 as markets are still buoyant following the Kingdom of Saudi Arabia
as it announced that it would voluntarily reduce its production by a million barrels a day in February and March.

According to OANDA analysts, US crude has a chance to rise again as the Biden administration will tighten screws on US crude production.


Saudis have initially alleviated supply concerns

Saudis have initially alleviated supply concerns by reducing them by a million barrels a day
and other easing may come indirectly from the USA.

On the other hand, Energy Information Administration issued its official weekly report of oil stockpiles yesterday.

Stocks decreased by 8 million barrels during last week ending on January 1, 2021,
despite expectations of a decline of only 2.1 million barrels.


According to Reuters

According to Reuters, the decline in crude stocks is a typical event at the end of the year as
energy companies take oil out of storage to avoid tax bills.


Gold has not been positively affected after yesterday’s events

Gold rose today as Democrats were declared victorious in Georgia’s elections which boosted the possibility of further fiscal stimulus.

The careful tone of the Federal Reserve Bank regarding the US economy and disappointing jobs report increased expectations of early stimulus measures especially since everything is now in hands of Joe Biden, such as Presidency, House of Representatives, and Senate.


The US Treasury yields

Nevertheless, strong US Treasury yields limited Thursday’s gains as gold rose by less than 0.1% to trade at $ 1926 an ounce.

Gold rose from its daily lows as crowds of Trump supporters stormed US Capitol as lawmakers believed President-elect Joe Biden had won over President Donald Trump.


The US Capitol

US Capitol has been put into lockdown as pro-Trump protesters breach security barriers with US lawmakers indoors.

Yesterday, gold fell to its lowest level in session at $ 1902 an ounce.

This is the lowest level of gold since the quarter of current January.


The dollar is rising against a basket of currencies after recovering from its lowest level through 3 years

US dollar fell to trade near its lowest level in 3 years after Democrats reaped everything in the United States of America.

This leads to an increase in Biden’s power and supports his policy.


According to Reuters

According to Reuters, analysts generally assume that the Democratic-controlled Senate will be positive
for global economic growth and thus for most risky assets,
but it will be negative for bonds and dollars as the trade deficit in the US budget may widen.

Despite the great chaos that occurred in the USA yesterday, the currency market is now stable as it is.

US dollar index declined today to 89.321 after reaching 89.206 overnight.

This is its lowest level since March 2018.

Despite this decline of the US dollar, it managed to rise against a basket of major currencies even
if by small percentages, as the euro fell against the US dollar by 0.01% recording 1.2320 and the sterling fell against the green currency by 0.13% to record 1.3585.


The Australian dollar and New Zealand dollar

The Australian dollar and New Zealand dollar fell against the greenback by 0.09% and 0.08% at 0.7792 and 0.7284, respectively.

The dollar rose against the Japanese yen by 0.25% to trade at 103.299,
while it fell by 0.09% against the Chinese Yuan to trade at 6.4565.


How was the stock market performance?

US equity futures rose as Senate rejected the second challenge of Democratic
President-elect Joe Biden’s votes after police dispersed the crowd that stormed Capitol.

According to Evest Tracks, S&P 500 futures rose by 0.6%,
while Nasdaq100 futures fell0.6%, but Dow Jones futures rose 1.4%.


In Asia

In Asia, Nikkei rose by 1.6%, Shenzhen rose by 1.1%, while S & P /ASX 200 rose to 1.59%,
and Kospi rose by 2.1%, as markets rejoiced with the victory of Democrats in US Georgia.


The Hang Seng

The Hang Seng index declined to 0.17%.


European markets

European markets are expected to open trading today on a positive note,
after main indexes of European stock exchanges collectively ended their trading in the green zone, yesterday.


Storming the Capitol

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