Seems that a number of ASX stocks were impacted by the Georgia runoff election / vote tallying in the US today. One days the ASX will move away from the US market's shadow but seems like not just yet.
Similarly to the November election, Democratic candidates received late votes to tighten the race. US market futures dropped and the gold spot price took a hit as a result (gold was due a pullback after $60 rise). I've seen a lot of coverage that suggests the Democrats are likely to win both seats.
Markets seem concerned that the Democrats winning both seats will allow legislation to be pushed through unopposed - history suggests that when Democrats control both houses, the market tends to fall initially before moving up.
All of this is white noise in my opinion:
- Regardless of who wins Georgia, there will be more stimulus and debt (- for USD and + for gold). If Democrats win, it is likely to be significantly more;
- A large number of Democratic Senators are due for re-election in 2022 - unlikely that taxes will be raised (even at the top end) given the current economic climate and the risk of losing Senate seats next year (US politicians main goal?).
More stimulus likely means asset prices rise across the board (gold +++) and market volatility goes through the roof.
Moving to NXM, there has been less than 2 million shares traded each day since 9 December. I'm of the opinion that we are coiling as we await further news and suspect NXM just needs the FS (which may be coupled with decision to mine?) to start the march up towards all time highs with the gold price. After 24.5c, we're blue sky
Andy T said it best during the most recent Proactive interview "2021 is shaping to be a transformational year for Nexus'.
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