NEW YORK (Reuters) – World stock markets hit record highs Thursday and the dollar fell as investors bet on major stimulus from New US President Joe Biden and unwavering support from the global central bank would cushion the damage of the coronavirus and support economic growth.
In Europe, the pan-European STOXX 600 index closed 0.17% higher, while the FTSE slid 0.4% and the DAX 0.11%.
The euro has risen [/FRX] as the European Central Bank’s first policy meeting of the year did not bring about any changes to its support policies.
Asian equities hit new highs overnight, Wall Street rose further and MSCI’s global equity performance index in 50 countries gained 0.3%.
The three major Wall Street indices had an upward trend in early trading, although falling stocks outpaced the winners by a ratio of 1.5 to 1.
This year’s initial trend of investors piling into cyclical equities has returned to buying large-cap growth stocks that drove last year’s post-pandemic rally, said Tim Ghriskey, chief investment strategist at Inverness Counsel. New York.
“It’s the opposite of what happened from the beginning of the year until Tuesday. Today and yesterday were definitely a growing market, especially tech plus big-cap, “Ghriskey said.
“There is concern about the distribution of the vaccine.”
The Dow Jones Industrial Average fell 35.59 points, or 0.11%, to 31,152.79. The S&P 500 lost 1.32 points, or 0.03%, to 3,850.53 and the Nasdaq Composite added 49.99 points, or 0.37%, to 13,507.24.
The pan-European STOXX 600 index rose 0.16% and the MSCI index of stocks around the world gained 0.1%.
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Treasury yields were mostly higher and the yield curve tightened after US labor market data showed that new jobless benefits claims fell modestly last week.
The data eased concerns that the U.S. job market could deteriorate further, said Guy LeBas, chief fixed income strategist at Janney Capital Management in Philadelphia.
“Having a flat or slightly improved data point for the second week of January helps argue that the trend is not towards more claims,” LeBas said.
Euro zone bond yields jumped to one-week highs, a move that analysts have largely attributed to the ECB saying it may not fully exploit the firepower of its bond buying program.
The ECB kept the deposit rate unchanged at -0.5% and kept the overall quota for bond purchases at € 1.85 trillion, as expected.
The dollar index fell 0.265%, with the euro up 0.38% to $ 1.215, amid expectations of a boost to Biden stimulus and after the Bank of Japan left its policies unchanged during the night.
The benchmark 10-year Treasury note fell nearly 1 basis point to push its yield up to 1.099%.
In commodity markets, oil prices fell following an unexpected surge in US crude oil inventories, although hopes for an economic recovery kept losses in check.
US crude fell 0.21% to $ 53.20 a barrel and Brent crude fell 0.12% to $ 56.01 a barrel.
Industrial metals such as copper, nickel and iron ore all rose as spot gold slipped 0.4% to $ 1,864.04 an ounce. [GOL/]
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Reporting by Herbert Lash; additional reportage by Marc Jones in London; Editing by Dan Grebler