Investing.com investing.com 04 Jan, 2021 07:30 am

How investors view the Georgia U.S. Senate runoff By Reuters

How investors view the Georgia U.S. Senate runoff By Reuters
Explainer: How investors view the Georgia U.S. Senate runoff

A flip to Democrat control could put more pressure on the dollar and spark Treasury debt yields higher, while Republicans keeping control could fuel equities, various analysts said.stock market are pricing an uptick in volatility around the runoff results, according to the CBOE Volatility Index , the stock market's fear gauge, and options activity, analysts said.Republicans winning both seats would be positive for stocks and limit the need for investors to tweak portfolios, some analysts said.dollar, it could mean less government spending which threatens to weigh on the greenback, and less risk of tax hikes that some see as limiting growth, analysts said.

Still, a Georgia sweep would only give the Democrats a slim Senate margin, meaning Democratic proposals such as on tax may be watered down, analysts have said.FILE PHOTO: Senator Kelly Loeffler (R-GA), Senator David Perdue (R-GA), and White House senior advisor Ivanka Trump wave during a campaign event in Milton p By Saqib Iqbal Ahmed and John McCrank NEW YORK (Reuters) - Investors have been weighing a major political unknown since the November election that could ripple through asset prices: control of the Senate.

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