Global stocks, oil lead risk rally on U.S. stimulus hopes
Send a link to a friend
[December 29, 2020]
By Simon Jessop
LONDON (Reuters) - Global shares rose for
the fourth straight day on Tuesday and oil followed suit as hopes of
fresh U.S. stimulus teed up a strong end to the year for riskier assets
and had the dollar eyeing two-and-a-half-year lows.
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.
![](http://archives.lincolndailynews.com/2020/Dec/29/images/ads/current/castlemanor_sda_FINANCIAL_2017.png)
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.
[to top of second column]
|
![](../images/122920PIX/news_q33.jpg)
A man wearing protective face mask, following an outbreak of the
coronavirus disease (COVID-19), walks in front of a stock quotation
board outside a brokerage in Tokyo, Japan, March 10, 2020. REUTERS/Stoyan
Nenov
![](../images/ads/current/fitzpatrick_lda_SPONSOR_2017.png)
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.
![](http://archives.lincolndailynews.com/2020/Dec/29/images/ads/current/fricke_sda_WORSHIP_2019.png)
A sluggish dollar bolstered gold prices, which rose 0.4%. [GOL/]
(Editing by Larry King)
[© 2020 Thomson Reuters. All rights
reserved.] Copyright 2020 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content. |