FTSE 100 to start higher as US Senate elections near conclusion

The FTSE 100 is expected to open higher on Wednesday morning as counting continued the decide the results of crucial US Senate runoff elections in the state of Georgia.

The blue chip index is expected to rise 36 points at the opening after closing Tuesday’s session 40 points higher at 6,612.

Expectations of a positive open in London followed a solid performance for US markets overnight, with the Dow Jones Industrial Average closing 0.55% higher at 30,391 while the S&P 500 climbed 0.71% to 3,726 and the Nasdaq rose 0.95% to 12,818.

The trajectory followed initial results from the vote in Georgia, with analysts giving a slight edge to Democrat candidates Jon Ossoff and Raphael Warnock over Republican incumbents Kelly Loeffler and David Perdue.

A Democrat victory will leave the party in control of both houses of Congress and the presidency, increasing the chances for Joe Biden to enact more of his legislative agenda following his inauguration on January 20.

Things were looking less positive in Asia this morning, with Japan’s Nikkei 225 down 0.38% while Hong Kong’s Hang Seng fell 0.21% following reports of mass arrests of pro-democratic politicians in the city earlier today.

Currency markets, meanwhile, were mostly flat on Wednesday morning, with the pound little changed at US$1.362 against the dollar.

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