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Summary
- Asian stocks were down due to looming political uncertainty on the US Senate control.
- Georgia Senate election results will decide the power in US upper house.
- Saudi Arabia has moved with oil production cuts, while overall OPEC production remains flat.
With uncertainty looming large over the outcome of Georgia Senate runoff elections, Asian stocks were trading largely in red at the time of writing.
The crucial runoffs which would determine the Senate’s future, are too close to call, as per media reports. As per the latest vote count, the Republican candidates are leading the Democrats marginally.
Source: Shutterstock
The results of the Georgia election will likely impact President-elect Joe Biden’s potential policies. After the results are out, it will be apparent which party has a majority in the US upper house.
A Republican-controlled Senate would mean that Joe Biden’s policies may face stiff opposition at the upper house. Likewise, a Senate with a Democratic majority will allow smooth sailing of Joe Biden’s agenda.
During the General Elections, the candidates could not garner over 50% of the votes, pushing the Senate elections for runoffs. Exit polls from the US media houses have pointed to a tight contest in the two seats.
Meanwhile, with new and mutated strains of COVID-19 spreading in many countries, there is an acknowledgment among oil producers that lockdowns will likely impact crude oil demand.
Crude oil companies were marching higher after the OPEC+ decided not to increase the production rate. Saudi Arabia unilaterally opted for a million barrel per day production cut over the coming months. As a result, the price of crude oil is likely to remain stable.
In the US, President Donald Trump also signed an executive order to impose ban on eight Chinese applications, including Alipay and WeChat.
Source: Pexels
Asian Stocks:
- Nikkei 225 was down around 0.53%.
- Shanghai Composite was down 0.17%.
- ASX 200 shed 1.33%.
- NZX 50 was down 0.24%
- Hang Seng Index was down 0.97%
- South Korean KOSPI was down 0.6%.
