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American investors applaud the approval of the latest round of coronavirus relief aid, which has restored some of the optimism that drove global stocks to a record high this month.
US stocks rose to records after President Donald Trump backed away from previous threats and signed a coronavirus relief package.
The S&P 500 Index, the Dow Jones Industrial Average and the Nasdaq Composite all hit record highs following Trump’s surprise approval of the $ 2.3 trillion Covid-19 combined government aid and funding package. Germany’s DAX index also rose to a record high. Treasuries fell and the dollar strengthened.
Bitcoin pulled out after a rally over the holidays pushed it past $ 28,000 for the first time.
American investors applauded the American aid package, restoring some of the optimism that drove global stocks to a record high this month, even as the pandemic escalated. In passing the bill, Trump also demanded a vote in Congress to replace the $ 600 in direct stimulus payments with $ 2,000, a non-binding request that is unlikely to pass both houses. Still, Goldman Sachs Group Inc. improved its forecast for US economic growth for the first quarter due to the move.
“The new law is broad enough to make a significant difference to people,” Dennis DeBusschere, head of portfolio strategy at Evercore ISI, said in a note to clients. “Ignore the noise about ‘disappointing’ controls and focus on setting up for a strong economic recovery in 2021, particularly in the services sector.”
Alibaba Group Holding Ltd. crashed in Hong Kong despite pushing its share buyback program to $ 10 billion, amid ongoing concern over China’s investigation of alleged monopoly practices. Regulators ordered affiliate Ant Group Co. over the weekend to return to its roots as a payment service provider, a development that threatens to stunt its growth.
On the coronavirus front, more restrictions are being imposed to combat the spread of the most infectious new strain. Indonesia imposed a temporary ban on all foreigners from visiting the country, while Taiwan will increase the quarantine period for flight crews to seven days. Meanwhile, the European Union launched a continent-wide vaccination campaign less than a week after clearing a vaccine developed by Pfizer Inc. and BioNTech SE.
Elsewhere, the pound weakened after the UK last week closed a landmark Brexit trade deal with the European Union.
Here are some key events to come:
- Data from the trade balance of goods and pending US home sales.
- Initial figures for jobless claims in the United States are released Thursday.
- Most of the world’s stock markets are closed on Fridays for New Years Day.
These are the main movements in the markets:
Stocks
- The S&P 500 Index rose 0.9% as of 3:33 p.m. in New York.
- The Stoxx Europe 600 Index was up 0.7%.
- The MSCI Asia Pacific Index gained 0.1%.
- The MSCI emerging markets index fell 0.2%.
Coins
- The Bloomberg Dollar Spot Index was up 0.1%.
- The euro was up 0.1% at $ 1.2204.
- The British pound was down 0.9% at $ 1.344.
- The Japanese yen weakened 0.4% to 103.85 per dollar.
Captivity
- The 10-year Treasury yield rose less than one basis point to 0.93%.
- Germany’s 10-year yield fell two basis points to -0.57%.
- Britain’s 10-year yield was unchanged at 0.25%.
Raw Materials
- West Texas Intermediate crude fell 1.2% to $ 47.65 a barrel.
- Gold fell 0.5% to $ 1,873.76 an ounce.
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