LONDON / SINGAPORE (Reuters) – Global equities rose to a high and oil advanced Thursday as investors swept risky assets in hopes of a US fiscal stimulus and the Federal Reserve’s commitment to keep pumping cash into the markets.
From stocks to safe haven gold and volatile bitcoin, financial assets had a festive state. Bitcoin hit another all-time high after breaking the $ 20,000 level for the first time on Wednesday.
U.S. Congress negotiators “closed” a $ 900 billion COVID-19 aid bill that is expected to include stimulus checks between $ 600 and $ 700 for individuals, lawmakers said Wednesday.
These checks issued during the spring caused bettors to pour money into stock exchanges and bitcoins, which helped to quickly recover the shares of the COVID-19 coup. A London trader pointed to the possibilities of a new retail boost in the stock markets.
The general risk mood pushed the dollar to a 2-1 / 2-year low against major pairs, while the MSCI global stock index hit a new high of 639.64. The index has risen 16% since the end of October. Since then, multiple advances have been announced against the COVID-19 vaccine.
“While we expect the shares to benefit more from positive news about vaccine deployment and U.S. tax support, the same cannot be said for the U.S. dollar,” said Mark Haefele, chief investment officer. of UBS Global Wealth Management.
“We see even more weakness (in dollars).”
European equities and the euro rallied for the fourth straight session as investors rose positions in riskier assets, anticipating a strong economic recovery in 2021, backed by widespread vaccine deployment and an ultra-light monetary policy.
The British pound reached its May 2018 highs in hopes of a post-Brexit trade deal.
In Asia, MSCI’s broader Asia-Pacific stock index outside of Japan rose 0.6%, to a record high. The Japanese Nikkei rose 0.2%, almost shy of a 29-year high. [.T]
Wall Street stock futures signaled higher, and the S&P 500 futures hit a record high after closing the Nasdaq record on Wednesday.
(Chart: 2020 global stock market indices)
SANTA RALLY
Brent crude oil futures rose 1.2% to $ 51.71 a barrel, the highest since early March, before fears over production and virus concerns pushed oil prices up. a cliff. [O/R]
“My suspicion is that markets are inclined to extend this concentration for two reasons,” said Vishnu Varathan, chief economist at Mizuho in Singapore, citing support for U.S. monetary policy and the deployment of vaccines.
“If the new infection numbers don’t go crazy … I think there’s room for the so-called Santa concentration at the end of the year,” he said.
U.S. Federal Reserve Chairman Jerome Powell vowed on Wednesday to continue pouring cash into markets until the U.S. economic recovery is secure.
Bond traders were disappointed because it did not expand the Fed’s buying program further down the yield curve, and the U.S. Treasury was sold at longer tenors, but others viewed it as a sign that the bank will have its back. [US/]
The Swiss National Bank kept its ultra-expansionary monetary policy in suspense, keeping the world’s lowest interest rates and staying ready to initiate monetary interventions despite the United States labeling it a currency manipulator.
The Swiss franc lagged behind at 0.8835.
Better-than-expected labor data in Australia pushed the Australian to $ 0.7624, the strongest since mid-2018. [AUD/]
The Australian is also on par with rising iron ore prices and a mood that has pushed currencies in Malaysia, Singapore, Thailand, Taiwan, Sweden and Norway to record highs. [EMRG/FRX]
The kiwi peaked in early 2018 after New Zealand’s economic growth exceeded expectations.
The US Treasury remained stable, with a yield on ten-year government bonds fixed at 0.9246%.
Cryptocurrency bitcoin increased profits after surpassing $ 20,000 overnight. It rose 8% to $ 23,058. Investors are attracted to its boost (up 200% this year) and its alleged resistance to inflation due to its limited supply.
Gold rose 0.3% to $ 1,869 an ounce. [GOL/]
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