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Global Reflation The base case for the global economy is a growth and profits boom in 2021.

Risk markets are having a wonderful end to the week now that Trump has finally conceded he lost the election (from two months ago).

Stimulus and vaccine hopes are overriding concerns of more market regulation from a Democrat-controlled Congress, as Wall Street surged to big new record highs overnight, overshadowing the political turmoil seen in the Capitol yesterday.

A strange day for geo-politics as the US goes bananas – literally – which hasn’t upset risk markets as the certainty around a Biden administration becomes pretty clear.

Wall Street continued to surge overnight despite the chaos on Capitol Hill with only the NASDAQ pulling back with European stocks outperforming.

Another mixed day of trading in Asia with most stock markets declining or putting in minor scratch sessions as Wall Street futures pulled back in the wake of a probable Democrat victory in the special Georgian elections that will decide the fate of the Senate.

Wall Street refound its lost confidence overnight as the Georgian senate races got underway as a selloff in Treasuries – sending 10 year yields nearer the 1% magical level – embiggened stock bidding, lifting the S&P500 to a new high.

Another mixed day of trading in Asia with most stock markets putting in scratch sessions as confidence was lost on Wall Street overnight.

It was all set to be a clear path into 2021 with Asian and European stock markets doing well, as Wall Street lost confidence overnight in the wake of the UK virus lockdown and uncertainty around the US election (both presidential and upcoming Georgian senate races).

A quiet last day of trading before the Christmas break here in Asia with some mild raises across stock markets and low volatility in currency land.

Action on risk markets overnight was relatively mild as Trump’s dumping of the Congress stimulus package was absorbed with aplomb by stocks, with rumors that the Brexit deal is almost sealed helping lift European stocks.

Asian stocks are regaining after their stumble yesterday, and despite the threatened veto by almost-former President Trump to stop the just-passed US stimulus package, S&P futures are on the mend as risk markets re-balance from that catalyst.

A mixed night on risk markets as the Asian close presaged downside volatility that didn’t eventuate on European markets, but kept Wall Street on edge with only tech stocks on the NASDAQ advancing as the latest US stimulus package didn’t do much to lift confidence.

Asian stocks are in full flight as the selling gains traction following the fallout from the UK lockout and the European lockdowns as the Congress stimulus package (let them eat cake basically) underwhelms.

Big round trip’s in prices across many risk markets overnight due to concerns over a new strain of COVID-19, leading to a leap in volatility that is sure to continue here in Asia.

Asian stocks are struggling to gain traction at the start of what is likely to be a low volume trading, following the less than stellar performance on Wall Street on Friday and the weekend news of more economic lockdowns across Europe.

Risk sentiment faded on Friday night across both sides of the Atlantic as European measures to contain COVID ramped up, putting pressure on their respective economies, while the lack of any measures in the US is sending the death toll higher and higher, as Congress does 2/5ths of SFA to engage meaningful stimulus.

Stocks are really struggling going into the end of week trading here in Asia after the mid week surge fades quickly as pessimism sneaks in.

More hopium is sending risk sentiment higher, at least on Wall Street as traders book a potential pre-Christmas stimulus package from Congress.

It’s risk on everywhere here in Asia as the bids go wild as optimism for a stimulus package from the US Congress firms yet again.

Via JPM: SMid-Caps (and equities in general) have gone straight up since the start of Nov(the MSCI Europe Small Cap is up 17% since then… the MSCI ACWI small capindex up 19%).

Risk sentiment was slightly mixed but still somewhat positive overnight with some minor gains across the Atlantic stock markets as traders remain on edge waiting for news on Brexit and Congress stimulus talks .

Better hopes for a stimulus package from the US Congress is sending the USD down and risk up across Asia today, with strong moves locally as the iron ore price keeps heading to the moon.