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The
MSCI World Index was up 0.4% at 1203 GMT, while U.S. stock
futures pointed to a similar move at the open on Wall Street,
tracking broad-based gains in Europe and overnight in Asia.
Across Europe, Britain's blue-chip shares led regional markets
higher on their first day of trading since the Christmas Eve
agreement of a trade deal with the European Union.
The FTSE 100 rose 2.1%, on course for its fourth straight day of
gains, led by companies in a range of sectors likely to benefit
from the deal, including Intertek and Diageo.
"Multinationals, who are the likeliest beneficiaries of
frictionless, tariff-free trade, and overseas currency earners
are generally leading the charge in the FTSE 100," said Russ
Mould, investment director at AJ Bell.
Propping up the London market were banks and other financial
services.
"This suggests that nerves remain over what deal will be struck
in 2021 when it comes to financial services and indeed services
overall."
Also among the gainers was drugmaker AstraZeneca buoyed by news
its COVID-19 vaccine is set to be granted emergency use approval
within a few days by the UK government.
The launch of the European Union's vaccination programme, hoping
to end the widespread lockdowns that have stalled economies
across the bloc, saw that positive sentiment shared with the
continent, where beaten-down travel and leisure stocks rose
2.3%.
The global stock gains and likely higher U.S. stock market open
remain underpinned by hopes a $2.3 trillion stimulus package
signed into law by President Trump on Sunday will be approved by
the Senate.
The package covers $1.4 trillion in spending to fund government
agencies and $892 billion in COVID-19 relief, including $2,000
relief cheques to help cushion the economic impact of the
pandemic.
The prospect of higher demand helped boost oil prices with Brent
crude futures and U.S. West Texas Intermediate both up around
1.2%.
Demand for riskier assets weakened the U.S. dollar, which is
often seen as a safe-haven asset. It was down 0.2% against a
basket of currencies and eyeing the 18-month low hit in
November.
Shorting the dollar has been a popular trade. Calculations by
Reuters based on data released by the Commodity Futures Trading
Commission on Monday suggested that trend would persist. Short
positions on the dollar swelled in the week ended Dec. 21 to
$26.6 billion, the highest in three months.
Among other currencies, sterling rose 0.4% against the dollar,
reversing two days of losses, while the euro climbed for the
third day in a row, up 0.3%, also buoyed in part by talk of an
EU-China trade pact.
Yields on European government debt edged lower, with blue-chip
10-year German bond yields at 0.57% and riskier Italian, Spanish
and Portuguese yields also lower.
A sluggish dollar bolstered gold prices, which rose 0.4%. [GOL/]
(Editing by Larry King)
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