LONDON (Reuters) – Global equities rose for the fourth straight day on Tuesday and oil followed suit as hopes of a new US stimulus ended a strong year-end for more assets. risky and the dollar had two and a half years of minimum sight.
The MSCI World index rose 0.4% to 1203 GMT, while US equities pointed to a move similar to the opening of Wall Street, following the powerful gains in Europe and during the night in Asia.
Across Europe, Britain’s blue shares boosted regional markets on the first day of trading since the Christmas Eve deal of a trade deal with the European Union.
The FTSE 100 rose 2.1%, ongoing for its fourth consecutive day of earnings, led by companies in several sectors that could benefit from the deal, including Intertek and Diageo.
“Multinationals, which are the most likely beneficiaries of friction-free, tariff-free trade and foreign exchange winners, generally lead the position in the FTSE 100,” said Russ Mold, AJ Bell’s chief investment officer .
Banks and other financial services boosted the London market.
“This suggests that nerves remain about the agreement that will be reached in 2021 in terms of financial services and, in fact, services in general.”
Among the winners was also drug maker AstraZeneca, which received news that the British government should approve its COVID-19 vaccine in a few days.
The launch of the European Union’s vaccination program, hoping to end the widespread closures that have stopped economies across the bloc, saw positive sentiment shared with the continent, where travel and leisure stocks exceeded increased by 2.3%.
Global stock market gains and likely a larger U.S. stock market opening remain based on hopes that the Senate will approve a $ 2.3 trillion stimulus package signed into law by President Trump on Sunday.
The package covers $ 1.4 trillion in spending to fund government agencies and $ 892 billion in aid to COVID-19, including $ 2,000 checks to help cushion the economic impact of the pandemic.
The prospect of higher demand helped boost oil prices with futures on Brent crude and the Northwest Texas Intermediate of the United States rising about 1.2%.
Demand for riskier assets weakened the U.S. dollar, which is often considered a safe haven asset. It fell 0.2% compared to a basket of currencies and observed the minimum success of the 18 months of November.
Reducing the dollar has been a popular trade. Reuters calculations based on data released Monday by the Commodity Futures Trading Commission suggested the trend would continue. Dollar short positions rose in the week ending Dec. 21 to $ 26.6 billion, the highest in three months.
Among other currencies, the pound rose 0.4% against the dollar, investing two days of losses, while the euro rose for the third day in a row, 0.3% more, also driven in part by talk of an EU-China trade pact.
European government debt yields fell, with yields on ten-year German bonds at 0.57% and riskier yields on Italian, Spanish and Portuguese.
A slow dollar strengthened gold prices, which rose 0.4%. [GOL/]