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Bloomberg
Stocks started off the week on a bullish note as investors took comfort from further stimulus bill negotiations and the impending deployment of the first vaccine in the US
S&P 500 futures gained about 0.6%, with the first deliveries of the Pfizer Inc-BioNTech SE vaccine in the US due to arrive on Monday. A bipartisan group of lawmakers is set to unveil a $908 billion pandemic relief bill the same day, although there is “no guarantee†Congress will pass it, a key
negotiator said.
In Europe, stocks climbed and the pound jumped after Brexit talks were extended past a deadline, raising hopes of a deal. Improving business confidence helped Japanese shares rally to a more than two-year high on Monday.
Global equities are looking to rebound from their first week of losses in six, even as hurdles remain for a US stimulus deal and the coronavirus continues to spread.
New York is stopping indoor dining on Monday, while Germany will go into a hard lockdown on Wednesday. Still, the head of the US government’s vaccination drive said as much as 80% of the population could be given the shot by next summer, putting “herd immunity†within reach.
The vaccine “is giving markets the ability to look past the valley,†Andy Kapyrin, partner and director of research at Regentatlantic Capital LLC, said on Bloomberg TV. “Stocks pose a reasonable value proposition†relative to bonds, he said.
Elsewhere, WTI crude oil topped $47 a barrel after another tanker explosion in the Middle East.
Tuesday brings China industrial production and retail sales data for November.
The Federal Reserve meets on Tuesday and Wednesday, with markets widely expecting fresh guidance on its continued asset purchases.
Policy decisions from the Bank of England and central banks in Mexico, Switzerland and Indonesia are due Thursday. Japan and Russia announce decisions on Friday.
Futures on the S&P 500 Index rose 0.6% as of 8:13 am in London. The Stoxx Europe 600 Index jumped 0.8%. The MSCI Asia Pacific Index climbed 0.1%. The MSCI Emerging Market Index sank 0.1%.
The Bloomberg Dollar Spot Index dipped 0.4%. The euro gained 0.3% to $1.2153. The British pound surged 1.3%
to $1.34. The onshore yuan strengthened 0.1% to 6.539 per dollar. The Japanese yen strengthened 0.1% to 103.93 per dollar.
The yield on 10-year Treasuries gained one basis point to 0.91%. The yield on two-year Treasuries increased less than one basis point to 0.12%.
Germany’s 10-year yield increased two basis points to -0.62%. Britain’s 10-year yield climbed three basis points to 0.202%. Japan’s 10-year yield decreased less than one basis point to 0.011%.
West Texas Intermediate crude gained 1.6% to $47.33 a barrel. Brent crude increased 1.6% to $50.77 a barrel. Gold weakened 0.3% to $1,833.50 an ounce.