The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
European stocks tracked US equity futures higher on Wednesday, buoyed by earnings and hopes for more stimulus. The dollar extended its retreat.
Nasdaq futures rallied and tech shares led gains in the Stoxx 600 Index following strong earnings from Netflix Inc. and chipmaker ASML Holding NV. S&P 500 contracts edged higher a day after US Treasury Secretary nominee Janet Yellen unveiled a $1.9 trillion Covid-19 relief proposal to lawmakers.
Chinese firms trading in Hong Kong saw the bulk of gains in Asia, and the Hang Seng Index approached the 30,000 level. Alibaba Group Holding Ltd. jumped after billionaire Jack Ma resurfaced from months out of public view amid escalating scrutiny over his internet empire. Investors are counting on more spending to help propel economic growth under President Joe Biden.
Yellen — who could be confirmed as soon as Thursday — said that help for the unemployed and small businesses would provide the “biggest bang for the buck.†She urged lawmakers to act in efforts to rescue an economy battered by the coronavirus. She also said the US is prepared to take on China’s “abusive†trade and economic practices, and that the Biden administration won’t pursue a weak dollar.
Hang Seng Hovers Near 30,000 in Best Start to Year Since 1985
Hong Kong’s Hang Seng Index hovered mere points away from the 30,000 level on Wednesday as mainland traders continued to flood the market with cash.
The benchmark closed up 1.1% to 29,962.47 points, with an intraday high just 6.5 points shy of reaching the milestone last seen in May 2019. The index was given a boost in the afternoon after Alibaba Group Holding Ltd. co-founder Jack Ma resurfaced. He had been out of public view for months, and his appearance on a live stream sent shares of the tech company up as much as 11%, the most since July.
The equity gauge’s rally comes a day after it closed at the highest level in 20 months. Its best start to a year since 1985 has been fuelled by mainland investors shifting into more attractively valued Hong Kong-listed stocks — net purchasing a record $3.4 billion on Tuesday.
Round numbers matter in Hong Kong as equity-linked products tend to be marketed at key levels. A surge above the looming milestone may lead to more gains for the Hang Seng Index should some traders exercise their right to buy the underlying in Hong Kong’s popular derivatives market.
“The upward trend will continue but with certain fluctuations,†said Daniel So, Hong Kong-based strategist at CMB International Securities Ltd. He predicted that the index could jump another 1,000 points if the 30,000 level is reached.
Elsewhere, crude oil edged higher and gold traded at around $1,850 an ounce.
Futures on the S&P 500 Index climbed 0.2% as of 8:20 am London time and the Stoxx Europe 600 Index increased as much as 0.3%.
While the MSCI Asia Pacific Index gained as much as 0.6%. the MSCI Emerging Market Index advanced 1%.
The Bloomberg Dollar Spot Index sinks 0.2% and the euro increased 0.1% to $1.2146.
While the British pound jumped 0.3% to $1.367, the onshore yuan strengthened 0.2% to 6.467 per dollar. The Japanese yen strengthened 0.1% to 103.77 per dollar.
The yield on 10-year Treasuries gained less than one basis point to 1.09% and the yield on two-year Treasuries gained less than one basis point to 0.13%.
While Germany’s 10-year yield climbed less than one basis point to -0.53%, Britain’s 10-year yield fell less than one basis point to 0.285%. Japan’s 10-year yield fell one basis point to 0.049%. West Texas Intermediate crude climbed 0.8% to $53.39 a barrel and Brent crude gained 0.8% to $56.35 a barrel. Gold strengthened 0.8% to $1,854.79 an ounce.