Stocks, futures rise on stimulus bets; dollar declines

Bloomberg

Global stocks rise with US equity futures as investors focused on the prospect of additional fiscal stimulus and supportive Federal Reserve policy amid the worsening pandemic. The dollar dipped.
Europe’s Stoxx 600 Index opened higher in a broad-based rally. Stocks outperformed in South Korea and Hong Kong. US futures pointed higher, with Nasdaq 100 contracts leading gains ahead of a slew of tech earnings reports this week. Treasury yields edged up.
Global stocks are close to
all-time highs as expansive stimulus assuages concerns stemming from additional coronavirus lockdowns and the patchy rollout of vaccines, which has led to a tougher start for the world economy in 2021 than earlier expected.
US lawmakers are sparring over President Joe Biden’s proposed $1.9 trillion Covid-19 relief plan but investors continue to expect some additional spending to materialise eventually. Traders are also hoping Fed Chair Jerome Powell will provide reassurance after Wednesday’s policy meeting that $120 billion of monthly bond purchases won’t be
tapered any time soon.
“Investors see continued open-spigot monetary policy and more fiscal stimulus,” said Marc Chandler, chief market strategist at Bannockburn Global Forex. “Coupled with the vaccine’s rollout, it will generate a critical mass of more robust economic growth as the year progresses.”
Global coronavirus cases are nearing the 100 million mark, with the US stepping up surveillance of virus variants to monitor their impact on inoculations. Mexican President Andres Manuel Lopez Obrador said in a tweet that he is
infected with Covid-19.
Elsewhere, oil held near $52 a barrel in Asian trading following a surprise gain in US crude stockpiles. Gold dipped and Bitcoin traded at around $33,000 after tumbling last week.
Futures on the S&P 500 Index gained 0.5% as of 8:05 am London time and the Stoxx Europe 600 Index increased as much as 0.5%.
While the MSCI Asia Pacific Index advanced 1%, the MSCI Emerging Market Index climbed 1.3%.
The Bloomberg Dollar Spot Index falls 0.1% to 1,121.22 and the euro gained 0.1% to $1.2178.
While the British pound climbed 0.2% to $1.3713, the Japanese yen was little changed at 103.73 per dollar.
The yield on 10-year Treasuries climbed one basis point to 1.10% and the yield on two-year Treasuries gained less than one basis point to 0.12%.
While Germany’s 10-year yield gained less than one basis point to -0.51%, Britain’s 10-year yield advanced one basis point to 0.312%.
West Texas Intermediate crude gained 1.2% to $52.58 a barrel and gold weakened 0.1% to $1,853.45 an ounce.