Georgia runoffs will be one of the first key risk events for the market going into the new year

Will Republicans keep hold of the Senate or can Democrats seize control?

The two runoff elections will take place on 5 January next year i.e. next Tuesday, with plenty on the line in determining how US politics will shape up under Biden’s administration over the coming year(s).

As things stand, Republicans hold 50 seats and Democrats 48 seats in the Senate.

For Republicans to keep control, they would only need to win one of the two runoffs while Democrats need to win both to technically take control of the Senate. A tie will result in vice president-elect, Kamala Harris, breaking the deadlock.

In terms of hardcore Biden policies, the results here won’t matter but the optics on its own may be enough to at least get the market feeling more relieved if Congress isn’t divided.

Here is the latest rundown on how things are shaping up via FiveThirtyEight:

For bank trade ideas, check out eFX Plus