US and European stock futures rose with the most Asian stocks on Monday after President Donald Trump signed a stimulus package for the coronavirus. The dollar tapped lower on Treasury bills.
S&P 500 contracts soared as Trump pulled out of last-minute demands and approved the combined $ 2.3 trillion Covid-19 emergency relief and government funding package. Stocks advanced in Tokyo and Seoul, and fluctuated in Hong Kong and Shanghai. The Bloomberg Dollar Spot Index fell and government bond yields rose. Oil slipped and gold rose.
Alibaba Group Holding Ltd. slumped in Hong Kong despite ramping up its share buyback program to $ 10 billion amid continuing concerns over China’s investigation into alleged monopolistic practices. Chinese regulators ordered a branch this weekend Ant Group Co. to return to its roots as a provider of payment services, a development that threatens to slow down its growth.
Elsewhere, the pound fluctuated after the UK signed a landmark Brexit trade deal with the European Union last week.
The signing of US legislation prevents a further slowdown in stimulus measures and reinforces some of the optimism that has pushed global equities to a record high this month, even as the pandemic escalates. In passing the bill, Trump also demanded a vote in Congress to replace the planned $ 600 in direct stimulus payments with $ 2,000 – a non-binding request that is unlikely to go through both houses.
The stimulus “could support the market, support the US economy,” said Suresh Tantia, strategist at Credit Suisse Group AG. “Next year, all the building blocks will be in place for markets to continue this rally.”
More restrictions are being imposed in the field of coronavirus to prevent the spread of the new, more contagious species. Japan is one of the last to take action, banning entry for most foreigners until the end of January. Meanwhile, the European Union launched a continent-wide vaccination campaign less than a week after clearing a shot developed by Pfizer Inc. and BioNTech SE.
In cryptocurrencies, Bitcoin continued to rally during the festive hiatus, rising above $ 28,000 for the first time on Sunday before pulling out.
Here are some important events coming up:
- US home sales and trade balance data for goods are expected on Wednesday.
- The first figures for unemployment benefits in the US will be published on Thursday.
- Most global stock markets are closed on Friday for New Years Day.
These are the main movements in markets:
Shares
- S&P 500 futures were up 0.6% from 7am in London. The S&P 500 Index rose 0.4% on Thursday.
- The Japanese Topix index rose 0.5%
- The Kospi index in South Korea climbed 0.1%.
- Hang Seng Index lost 0.1%.
- The Shanghai Composite Index was stable.
- Euro Stoxx 50 futures added 0.5%.
Currencies
- The Bloomberg Dollar Spot Index fell 0.3%.
- The yen stood at 103.46 per dollar.
- The euro rose 0.3% to $ 1.2223.
- The pound had changed little at $ 1.3567.
- The offshore yuan was 6.5255 per dollar, down 0.2%.
- The Aussie rose 0.2% to 76.20 cents.
Bonds
- The yield on 10-year government bonds rose by three basis points to 0.95%.
Raw materials
- West Texas Intermediate crude oil fell 0.4% to $ 48.02 a barrel.
- Gold rose 0.2% to $ 1,887 an ounce.
– With the help of Eric Lam