Global markets positive on recovery hopes
Global shares rose to just shy of record highs, as optimism over a $1.9 trillion U.S. stimulus plan outweighed increasing COVID19 cases and delays in vaccine supplies.
MSCI’s All Country World index, which tracks stocks across 49 countries, was up 0.2% on the day.
E-mini futures for the S&P 500 gained 0.3%, indicating gains on Wall Street. Global equity markets have scaled record highs in recent days on bets COVID-19 vaccines will start to reduce infection rates worldwide and on a stronger U.S. economic recovery under President Joe Biden.
European stock markets opened higher but fell back by midday in London with the panEuropean STOXX 600 flat. The continent’s 50 biggest stocks fell 0.25%.
Investors are also wary about towering valuations amid questions over the efficiency of the vaccines in curbing the pandemic and as U.S. lawmakers continue to debate a coronavirus aid package.
All eyes are on Washington
D.C. as U.S. lawmakers agreed that getting the COVID-19 vaccine to Americans should be a priority even as they locked horns over the size of the U.S. pandemic relief package. Financial markets have been eyeing a massive package, though disagreements have meant months of indecision in a country suffering more than 175,000 COVID-19 cases a day with millions out of work.
Sentiment in Asia was boosted by a report that China had surpassed the United States to be the largest recipient of foreign direct investment in 2020 with $163 billion in inflows. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.2% to 727.24, close to last week’s record high of 727.31. The benchmark is up nearly 9% so far in January, on track for its fourth straight monthly rise. Japan’s Nikkei rebounded from falls in early trading to be up 0.7%.
In commodities, Brent gained 0.5% to $55.71 a barrel and U.S. crude rose 0.6% to $52.67. Gold rose 0.5% to $1,860 an ounce.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.