As we approach the end of 2021, it’s not only the holiday season that’s on everyone’s minds. The political landscape has been shifting rapidly, and day traders should keep a close eye on these changes to make informed decisions. In this newsletter style post, we’ll discuss some of the most significant political events happening right now.
Firstly, let’s talk about the ongoing COVID-19 pandemic. As cases surge again in many parts of the world due to new variants like Omicron, governments are implementing stricter measures to curb its spread. For example, UK Prime Minister Boris Johnson announced that he would reintroduce strict mask-wearing rules and work from home guidance for all businesses starting December 15th. This announcement caused a dip in UK stock markets while boosting companies involved in remote communication technology such as Zoom and Microsoft Teams.
Meanwhile, US President Joe Biden has been pushing his Build Back Better plan through Congress as part of his administration’s efforts to tackle climate change and reduce economic inequality. The Build Back Better package includes various initiatives such as expanding Medicare benefits for seniors and funding clean energy projects. However, it faces challenges from both Republicans who argue that it will lead to higher taxes and inflation and progressive Democrats who say that it doesn’t go far enough.
The proposed legislation could have significant impacts on certain sectors like renewable energy or healthcare services depending upon how much funding is allocated towards them if passed by Congress.
Another major political event happening right now is the COP26 summit taking place in Glasgow from October 31st until November 12th with delegates attending from over 190 countries worldwide. At COP26 leaders will discuss ways to combat climate change including reducing greenhouse gas emissions (GHG) by at least half by 2030 which could lead to new regulations impacting certain industries related to fossil fuels like coal or oil production.
China has also been making headlines recently after President Xi Jinping announced plans earlier this month aimed at addressing the country’s energy crisis. The new initiatives include limiting coal consumption, expanding renewable energy sources such as wind and solar power, and promoting nuclear energy to reduce GHG emissions.
Moreover, the ongoing tensions between China and other countries like the US could have implications for certain tech stocks in both nations. Earlier this year, Chinese regulators cracked down on tech giants like Alibaba and Tencent due to concerns over monopolistic practices while in August 2021, Beijing introduced new regulations restricting minors’ access to online gaming which negatively impacted companies such as NetEase Inc.
Aside from these events already mentioned above there are also several upcoming elections that investors should watch closely. For instance, Germany held its federal election back in September with Angela Merkel stepping down after 16 years as chancellor. The results saw the Social Democrats (SPD) emerge victorious forming a coalition government with the Greens and FDP parties leading to increased spending on climate change policies which could benefit companies involved in renewable energy production.
In Brazil’s presidential election set for October 2022 where incumbent President Jair Bolsonaro is seeking reelection despite widespread criticism of his handling of environmental issues including deforestation of the Amazon rainforest. If Bolsonaro wins again it could lead to further international sanctions against Brazil affecting industries like agriculture or mining depending upon how they impact rainforest conservation efforts.
Lastly but not least important is another political event worth watching out for: Russia’s parliamentary elections scheduled for September 2021. While Putin himself isn’t up for re-election until 2024 when his current term ends speculation suggests he may be looking towards consolidating power ahead of next year’s vote either by increasing control over state media outlets or cracking down on opposition movements.
In conclusion, these are just some of the major political events occurring right now that day traders should keep an eye on. Changes happening within governments around the world can affect various market sectors positively or negatively depending upon how they influence policy. By staying informed and aware of these events, traders can make more educated decisions about where to invest their money.