Stimulus hopes stocks accelerate to record; Bitcoin dresses

LONDON / SINGAPORE (Reuters) – Global peaks have risen to new highs as investors acquire risky assets in anticipation of the US monetary stimulus and the Federal Reserve’s pledge to keep cash in the markets.

File photo: Pedestrians wearing face masks reflected on an electric board showing stock prices outside a broker in Tokyo, Japan’s business district, January 30, 2020. Reuters / Kim Kyung-hoon

From stocks to safe haven gold and volatile bitcoin, financial wealth was in a festive mood. Bitcoin hit a second all-time high after breaking the first $ 20,000 level on Wednesday.

U.S. congressional negotiators expected the V 900 billion COVID-19 aid bill to include stimulus checks for 600- $ 700 individuals closing.

Such an investigation, issued during the spring, led to money flowing into the stock markets and Bitcoin from punters, helping the stocks recover quickly from the blow of COVID-19. A London trader pointed to the possibility of a new retail-led undertaking in the stock markets.

The general risky mood sent the D-1L to a 2-1 / 2-year level against key peers, while the MSCI World Stock Index reached a new high of 639.64. The index has risen 16% since the end of October. Since then, multiple COVID-19 vaccine advances have been announced.

“While we expect positive news on vaccine rollouts and US financial aid to benefit stocks, the same cannot be said for the US dollar,” said Mark Heffley, chief investment officer at UBS Global Wealth Management.

“We see weakness in the dollar.”

European stocks and the euro rallied for the fourth straight session as investors shifted to risky assets in anticipation of a sharp economic recovery in 2021, backed by broad vaccine rollouts and ultra-simple monetary policy.

The British pound is at a May 2018 high on hopes of a post-Brexit trade deal.

In Asia, MSCI’s broad index of Asia-Pacific shares outside Japan rose 0.6% to a record high. Japan’s Nikkei rose 0.2% – the only 29-year-old’s top shy. [.T]

Wall Street stock futures were pointing to further sideways, with the S&P 500 futures hitting record highs after the Nasdaq closed higher on Wednesday.

(Graphic: Global Stock Index 2020,)

Santa Rally

Brent crude rose 1.2% to 51.71.71 barrels a barrel, the highest since early March, before over-production fears and virus concerns pushed oil prices off a cliff. [O/R]

“My suspicion is that the markets are prolonging the rally for two reasons,” said Vishnu Varath, chief economist at Mizuho in Singapore, citing US monetary policy support and vaccine rollouts.

“If the new infection figures don’t go crazy … I think there’s some scope for the so-called Santa Rally at the end of the year.”

US Federal Reserve Chairman Jerome Powell on Wednesday vowed to continue pouring cash into markets until the US economic recovery is secured.

Bond traders were disappointed, they did not extend the Fed’s buy program below the yield curve, and U.S. The treasury had long been sold on tanners, but others took it as a signal that it would be back. [US/]

The Swiss National Bank has maintained its ultra-expensive monetary policy, keeping in mind the world’s lowest interest rates and despite being labeled a currency manipulator by the United States, it is ready to launch currency interventions.

The Swiss franc was last at 0.8835.

Australia The expected Labor Day in Australia has pushed the Ace to સિ 0.7624, the strongest since mid-2018. [AUD/]

Rising prices and moods of Aussie Iron Ore are also riding high as currencies in Malaysia, Singapore, Thailand, Taiwan, Sweden and Norway move toward landmark peaks. [EMRG/FRX]

After beating New Zealand’s economic growth expectations, Kiwi reached its strongest position in early 2018.

U.S. Treasuries continue, with benchmark ten-year government bond yields hovering at 0.9246%.

Cryptocurrency Bitcoin boosted profits after breaking $ 20,000 overnight. It rose 8% to 23,058. Investors are attracted by its pace – it has risen 200% this year – and its resistance to inflation due to limited supply.

Gold rose 0.3% to 8 1,869 an ounce. [GOL/]

Edited by Timothy Heritage