Stocks rose with a global gauge heading for records as a wave of stimulus optimism buoyed equities from Germany to Japan. The dollar slipped with Treasuries.
European equities rose more than 1% with almost every industry subsector in the green. U.S. futures climbed and the MSCI ACWI Index touched its highest level. President Donald Trump approved the combined $2.3 trillion Covid-19 relief and government funding package after U.S. lawmakers backed his proposal to boost stimulus checks.
Meanwhile, the U.K.’s Christmas Eve accord with the European Union propelled the FTSE 100 Index 2.6% higher, while the pound recouped some of Monday’s decline.
Elsewhere, crude oil pared an overnight loss as investors focused on new supply from OPEC+. Bitcoin fell back after a rally over the holiday pushed it past $28,000 for the first time.
Investors are cheering the U.S. aid package, sending the S&P 500 Index, Dow Jones Industrial Average, and Nasdaq Composite to all-time highs Monday even as the pandemic escalates. Goldman Sachs Group Inc. upgraded its first-quarter U.S. economic growth forecast because of the measure.
“Where we are right now in the equity market is somewhat of a sweet spot,” Michael Cuggino, president and portfolio manager at Permanent Portfolio Family of Funds, said on Bloomberg TV. “We’ve got stimulus, likely more on the way. You’ve got great comps on earnings going into next year with respect to equities, and you have a pent up demand situation as the economy both in the U.S. and globally comes out of Covid.”
On the coronavirus front, more restrictions are being imposed to fight the spread of the new, more infectious strain. Covid-19 hospitalizations in the U.S. reached new highs, while Southern California plans to extend a regional stay-at-home order. South Korea’s daily toll of fatalities rose to a record, while Thailand reported its first virus death since November.
Here are some key events coming up:
These are the main moves in markets:
Stocks
Currencies
Bonds
Commodities
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