US Democrats have clinched two crucial seats in the Senate runoff elections, which was called after no candidate won more than 50 per cent of the vote in the 2020 election.

It means the Democrats will control the White House, Senate and House for the next two years.

In a Wednesday note, Morgan Stanley strategists including Michael Zezas called the Senate flip the “first surprise of 2021” because investors had priced in another outcome.

For investors, Democrat control means good things.

It further supports additional fiscal stimulus, which could reduce the appeal of the US dollar as a safe haven and lift inflation expectations.

This will boost cyclical stocks, Zezas says.

Cyclical stocks sell items and services that are in demand when the economy is doing well.

They include restaurants, hotel chains, airlines, furniture, high-end clothing retailers, and car makers.

Copper will also benefit more than gold from fiscal stimulus and higher rates, Zezas said.

Global markets rose in response, although Wall Street eased from highs in afternoon trade after the US Capitol Building was breached by Trump supporters.

Today base metals are soaring. Global oil prices are up. Iron ore bounced up to ~168/t while gold – which loves volatility and uncertainty – dropped $US40 to $US1908/oz.

The Aussie market has started well, with the benchmark ASX 200 index  up 1.52 per cent to 6,707.7 points by midday eastern time.

WINNERS

Here are the best performing ASX small cap stocks at 12pm Thursday January 7:

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CODE NAME PRICE % CHANGE VOLUME MARKET CAP
APG Austpac Resources NL 0.002 100.00 250,000 3,165,663
DVN Devine Limited 0.18 80.00 118,655 15,873,056
KOR Korab Resources 0.02 53.85 4,609,720 4,322,409
BLY Boart Longyear 1.05 52.17 545,101 61,073,142
CLZ Classic Min 0.0015 50.00 10,767,523 16,734,968
TRN Torrens Mining 0.29 45.00 2,215,566 13,292,887
ECG Ecargo Hldg 0.03 42.86 33,310 12,920,250
ARO Astro Resources NL 0.0055 37.50 14,732,106 11,982,772
MLS Metals Australia 0.002 33.33 1,795,610 6,286,355
PCL Pancontinental Oil 0.002 33.33 500,000 8,110,073
SRZ Stellar Resources 0.025 31.58 14,159,530 12,501,657
SCU Stemcell United 0.022 29.41 52,540,998 13,143,717
PUR Pursuit Minerals 0.031 29.17 31,149,858 17,653,767
CSE Copper Strike 0.12 23.71 74,420 10,363,947
CGB Cann Global Limited 0.0085 21.43 74,233,033 35,954,370
88E 88 Energy 0.0095 18.75 130,441,815 85,292,723
CAU Cronos Australia 0.13 18.18 114,587 5,348,750
OAU Ora Gold Limited 0.026 18.18 2,289,414 18,498,595
FGL Frugl Group Limited 0.047 17.50 520,006 6,440,000
ARE Argonaut Resources 0.0105 16.67 85,594,881 26,215,843
MRD Mount Ridley Mines 0.0035 16.67 1,162,500 10,305,639
RNU Renascor Res 0.014 16.67 16,376,416 19,952,132
WBE Whitebark Energy 0.0035 16.67 7,125,000 12,189,377
PXX Polarx Limited 0.038 15.15 2,502,683 17,882,004
SGQ St George Min 0.115 15.00 1,419,365 50,354,338

 

LOSERS

Here are the worst performing ASX small cap stocks at 12pm Thursday January 7:

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CODE NAME PRICE % CHANGE VOLUME MARKET CAP
OEX Oilex 0.001 -33.33 14,000 6,243,195
CZN Corazon 0.002 -20.00 1,100,000 8,133,398
XTC Xantippe Res 0.0025 -16.67 2,816,683 12,223,693
NPM Newpeak Metals 0.003 -14.29 1,650,000 16,338,569
TSC Twenty Seven Co. 0.006 -14.29 1,056,077 14,837,579
NAE New Age Exploration 0.014 -12.50 9,128,339 18,992,487
TYX Tyranna Res 0.007 -12.50 2,329,219 10,258,885
WNB Wellness and Beauty 0.075 -11.76 659,300 5,729,787
KP2 Kore Potash PLC 0.016 -11.11 2,523,511 4,193,900
RMX Red Mount Min 0.017 -10.53 24,301,559 21,495,127
GGE Grand Gulf Energy 0.009 -10.00 2,112,500 3,837,495
PO3 Purifloh 1.32 -9.59 36,938 46,024,307
KTE K2 Energy 0.048 -9.43 4,230,481 15,934,829
HWK Hawkstone Mng 0.01 -9.09 2,728,305 16,627,309
PKD Parkd 0.04 -9.09 74,628 3,306,600
CWX Carawine Resources 0.25 -9.09 113,304 29,944,723
CDX Cardiex Limited 0.074 -8.64 2,898,390 67,864,858
SGI Stealth Global 0.096 -8.57 140,050 10,468,500
AZI Alta Zinc 0.0055 -8.33 972,341 21,664,195
EFE Eastern Iron 0.011 -8.33 1,669,084 5,684,225
SBR Sabre Resources 0.011 -8.33 21,910,886 20,196,764