(Bloomberg) – Markets kicked off in the green this week, with technology stocks soaring and investors continuing to focus on the $ 1.9 billion US Covid-19 emergency relief plan.
The futures contract on the Nasdaq 100 index added nearly 1%, which is better than the contracts on the Russell 2000 index of small-cap stocks. In Asia, the Chinese internet company Tencent Holdings Ltd. rose 11%, the biggest gain since 2011, as traders on the continent caused a huge frenzy for stocks and options.
The picture was more mixed in Europe, with stock benchmarks in France, Spain and the UK falling significantly. New York crude rose $ 53 a barrel and Bitcoin rose above $ 33,000. The dollar and euro were stable.
After ending at a rocky point last week, global equities are resuming their rise to the top, apparently confident that Democratic lawmakers will be able to continue their comprehensive stimulus package in light of Republican pressure. Equally important to the market will be the earnings parade this week, with the biggest US technology giants, including Apple Inc., Tesla Inc. and Facebook Inc., which will announce results.
“The Federal Reserve, continued earnings with high technology ahead and the fear of missing out are driving the stock market,” said Sebastien Galy, a senior strategist at Nordea Investment Funds. “We expect the Fed to push back against the idea of weakening and to support risky assets.”
The combination of record share prices, extreme gains in everything, from Bitcoin to GameStop Corp. shares and Tencent, coupled with the exuberance of investors, revives the debate over the exuberant stimulation of the central bank.
While corners of the U.S. stock universe are showing signs of foaming, it should not endanger the broader market, Goldman Sachs Group Inc. said.
“It recently emerged that the pockets of the market are showing investor behavior consistent with the bubbly sentiment,” strategists, including David Kostin, wrote in a note Friday. “But this excess poses a low systematic risk to the broader market due to their modest share of market capitalization.”
These are some important events ahead in the coming week:
Microsoft Corp., Apple Inc., Tesla Inc., Facebook Inc., UBS Group AG and Samsung Electronics Co. count among the results. Chinese President Xi Jinping will speak online during the World Economic Forum’s “The Davos Agenda 2021”. On Monday, the Governor of the People’s Bank of China, Yi Gang, and the chief economist of the European Central Bank, Philip Lane, spoke at a conference on Monday. Data on U.S. house prices and consumer confidence come Tuesday. The Federal Open Market Committee’s monetary policy decision and briefing by Chairman Jerome Powell was scheduled for Wednesday. Fourth-quarter GDP, initial demands for unemployment and new home sales are among U.S. releases on Thursday. U.S. revenue, spending and pending home sales come Friday.
These are the main movements in markets:
Stocks
Futures on the S&P 500 index rose 0.4% from 9:55 am London time. The Stoxx Europe 600 index rose 0.1%. The MSCI Asia Pacific Index rose 0.9%. The MSCI Emerging Market Index rose 1.1%.
Currencies
The Bloomberg Dollar Spot Index rose 0.1% to 1,123.57. The euro fell 0.2% to $ 1,215. The British pound fell 0.1% to $ 1,367. The Japanese yen changed little at 103.80 per dollar.
Effects
The yield on 10-year treasury fell by less than one basis point to 1.08%. The yield on two-year treasury rose by less than one basis point to 0.12%. Germany’s 10-year yield fell by two basis points to -0.53%. -year yield decreased by two basis points to 0.286%.
Commodities
West Texas Intermediate Crude Oil rose 1.3% to $ 52.66 a barrel. Gold was little changed at $ 1,855.70 per ounce.
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