Goldman Sachs – Stocks, Futures Rise on U.S. Aid; Dollar Retreats: Markets Wrap
(Bloomberg) — Most Asian stocks rose with U.S. and European futures Tuesday after the House backed higher stimulus checks following President Donald Trump’s signing of the virus relief bill. The dollar slipped with Treasuries.
Shares gained in Japan, Australia and Hong Kong, and fluctuated in South Korea and China. U.S. futures climbed after the House backed the president’s proposal to boost checks to $2,000 from $600, which creates a political dilemma for Senate Republicans. Earlier, the S&P 500 Index, Dow Jones Industrial Average and Nasdaq Composite touched all-time highs after Trump approved the combined $2.3 trillion Covid-19 relief and government funding package.
Elsewhere, crude oil pared an overnight loss as investors focused on looming new supply from OPEC+. Bitcoin fell back after a rally over the holiday pushed it past $28,000 for the first time. The pound was steady after declining.
Investors are cheering the U.S. aid package, restoring some of the optimism that drove global stocks to a record this month even as the pandemic escalates. Goldman Sachs Group Inc. upgraded its first-quarter U.S. economic growth forecast because of the measure.
“Where we are right now in the equity market is somewhat of a sweet spot,” Michael Cuggino, president and portfolio manager at Permanent Portfolio Family of Funds, said on Bloomberg TV. “We’ve got stimulus, likely more on the way. You’ve got great comps on earnings going into next year with respect to equities, and you have a pent up demand situation as the economy both in the U.S. and globally comes out of Covid.”
On the coronavirus front, more restrictions are being imposed to fight the spread of the new, more infectious strain. Indonesia imposed a temporary ban on all foreigners from visiting the country, while Taiwan will increase the quarantine period for flight crews to seven days. Covid-19 hospitalizations in the U.S. reached new highs, while Germany is seeking to expand production of shots to help bolster Europe’s vaccination program.
Here are some key events coming up:
U.S. pending home sales and goods trade balance data are due Wednesday.U.S. initial jobless claims figures are published Thursday.Most global stock markets are closed Friday for New Year’s Day.
These are the main moves in markets:
S&P 500 futures rose 0.3% as of 11:21 a.m. in Tokyo. The S&P 500 Index rose 0.9%.Topix index rose 1%.Australia’s S&P/ASX 200 Index rose 0.5%.South Korea’s Kospi index was little changed.Hong Kong’s Hang Seng Index rose 0.8%.Shanghai Composite Index fell 0.3%.Euro Stoxx 50 futures gained 0.3%.
The yen traded at 103.75 per dollar, up 0.1%.The offshore yuan was at 6.5249 per dollar, up 0.1%.The Bloomberg Dollar Spot Index fell 0.2%.The euro rose 0.2% to $1.2235.The British pound gained 0.1% to $1.3470 after dropping 0.9%.
The yield on 10-year Treasuries rose almost two basis points to 0.94%.Australia’s 10-year bond yield fell two basis points to 0.97%.
West Texas Intermediate crude rose 0.7% to $47.97 a barrel.Gold rose 0.1% to $1,875.61 an ounce.
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