U.S. stock futures and global equities rose higher Monday after President Donald Trump signed a coronavirus stimulus package.
S&P 500 contracts climbed after Trump slumped from last-minute claims and approved the $ 2.3 billion Covid-19 joint approval and government funding package. Germany’s DAX index climbed to a record high and the MSCI Asia Pacific Index rose 0.4%. The dollar tapped lower with the treasury.
Alibaba Group Holding Ltd. slipped in Hong Kong despite buying back the share to $ 10 billion amid continuing concerns over China’s investigation into alleged monopolistic practices. Chinese regulators ordered the subsidiary over the weekend Ant Group Co. to return to its roots as a payment service provider, a development that threatens to cut its growth.
In cryptocurrencies, Bitcoin continued over the festive period, rising $ 28,000 for the first time on Sunday before retreating.
The signing of US legislation is a further delay in the stimulus and reinforces the optimism that has pushed world stocks to a record this month, even as the pandemic escalates. In approving the bill, Trump also demanded a vote in Congress to replace the planned $ 600 direct payments for $ 2,000 – a non-binding request that is unlikely to succeed in both chambers.
The stimulus “can support the market and support the US economy,” said Suresh Tantia, strategist at Credit Suisse Group AG. “Next year, all the building blocks are there for markets to continue this rally.”
On the coronavirus front, more restrictions are being imposed to combat the spread of the new, more contagious strain. Japan is one of the newest to act and bans the entry of most foreigners until the end of January. Meanwhile, the European Union has launched a continental-wide vaccination campaign less than a week after a shot fired by Pfizer Inc. and BioNTech SE.
Elsewhere, the pound fluctuated after the United Kingdom struck a historic Brexit trade deal with the European Union last week. Oil has advanced and gold has changed little.
Here are some key events:
- U.S. pending sales of trade and trade balance data for homes are available Wednesday.
- U.S. initial figures on jobless claims will be published Thursday.
- Most global stock markets closed on New Year’s Day on Friday.
These are the main movements in markets:
Stocks
- Futures on the S&P 500 index rose 0.7% from 9:45 a.m. London time.
- The Stoxx Europe 600 index rose 0.6%.
- The MSCI Asia Pacific Index rose 0.3%.
- The MSCI Emerging Markets Index has changed little.
Currencies
- The Bloomberg Dollar Spot Index fell 0.3% to 1,123.50.
- The euro rose 0.4% to $ 1.2241.
- The British pound fell 0.1% to $ 1.3546.
- The Japanese yen changed little at 103.47 per dollar.
Effects
- The yield on 10-year treasury rose by three basis points to 0.95%.
- The return on two-year treasury fell by one basis point to 0.11%.
- The ten-year yield in Germany reached less than one basis point to -0.55%.
- Britain’s yield for ten years was unchanged at 0.257%.
Commodities
- West Texas Intermediate crude rose 1.1% to $ 48.85 a barrel.
- Gold changed little at $ 1,882.67 an ounce.
– With help by Eric Lam