Global stocks head for fresh record on US virus relief bill

Bloomberg

Stocks rise with a the global gauge heading for records as a wave of stimulus optimism buoyed equities from Germany to Japan. The dollar slipped with Treasuries.
European equities rise 1% with every industry subsector except banks and energy firms in the green. US futures climbed and the MSCI ACWI Index touched its highest level after US lawmakers backed the president’s proposal to boost stimulus checks to $2,000 from $600. President Donald Trump signed the virus relief bill on Sunday evening.
The FTSE 100 Index gained 1.7% following the Christmas Eve accord on Brexit. The pound added 0.5%
Earlier, the S&P 500 Index, Dow Jones Industrial Average and Nasdaq Composite touched all-time highs after Trump approved the combined $2.3 trillion Covid-19 relief and government funding package.
Elsewhere, crude oil pared an overnight loss as investors focused on new supply from Opec+. Bitcoin falls back after a rally over the holiday pushed it past $28,000 for the first time.
Investors are cheering the US aid package, restoring some of the optimism that drove global stocks to a record this month even as the pandemic escalates. Goldman Sachs Group Inc. upgraded its first-quarter US 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 US 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 hospitalisations in the US 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.
Futures on the S&P 500 Index increased 0.5% as of 8:53 am London time and the Stoxx Europe 600 Index gained 1%.
While the MSCI Asia Pacific Index jumped 1%, the MSCI Emerging Market Index climbed 0.4%.
The Bloomberg Dollar Spot Index falls 0.4% and the euro gained 0.3% to $1.2251. The British pound jumped 0.5% to $1.3513.
While the onshore yuan strengthened 0.1% to 6.53 per dollar, the Japanese yen strengthened 0.2% to 103.64 per dollar.
The yield on 10-year Treasuries advanced two basis points to 0.95% and the yield on two-year Treasuries increased one basis point to 0.13%.
While Germany’s 10-year yield increased less than one basis point to -0.56%, Japan’s 10-year yield was unchanged at 0.025%. Britain’s 10-year yield fell three basis points to 0.223%. West Texas Intermediate crude increased 1% to $48.08 a barrel and Brent crude gained 1% to $51.39 a barrel. Gold strengthened 0.3% to $1,879.93 an ounce.