Global stocks mixed on optimism over recovery, stimulus package

Global stock markets were mixed on Tuesday after another record-setting rally on Wall Street.

London and Frankfurt opened lower, while Shanghai, Tokyo and Hong Kong advanced.

US futures were lower a day after Wall Street’s benchmark S&P 500 index closed up 0.7%. Investors were encouraged by company earnings, news that a surge in coronavirus cases is easing, progress in distributing vaccines and the possibility of U.S. government stimulus.

Despite concern prices might be rising too fast, the momentum behind this reflation trade remains a force to reckon with, said Jingyi Pan of IG in a report.

In early trading, London’s FTSE 100 declined less than 0.1% to 6,518.19 and Frankfurt’s DAX lost 0.2% to 14,032.42. The CAC 40 in Paris was unchanged at 5,686.76.

On Wall Street, the future for the S&P 500 and Dow Jones Industrial Average were off less than 0.1%.

On Monday, the S&P 500, the Dow and the Nasdaq composite all set records.

In Washington, President Joe Biden and Congressional Democrats appear to be moving forward with a $1.9 trillion coronavirus stimulus plan. That includes a rise in the federally required minimum wage and cash aid to households.

Market participants doubled down on fiscal stimulus bets after U.S. Federal Reserve officials downplayed concerns the spending might fuel inflation, said Mizuho Bank in a report.

In Asia, the Shanghai Composite index rose 2% to 3,603.49 and the Nikkei 225 in Tokyo added 0.4% to 29,505.93. The Hang Seng in Hong Kong advanced 0.5% to 29,476.19.

The Kospi in Seoul shed 0.2% to 3,084.67 and Sydney’s S&P-ASX 200 lost 0.9% to 6,821.20.

India’s Sensex advanced 0.8% to 51,777.21. New Zealand and Singapore retreated while Bangkok and Jakarta advanced.

On Wall Street, Tesla rose 1.3% on Monday after the company said it purchased $1.5 billion in Bitcoin and pIans to allow customers to pay for their electric vehicles with the digital currency. Bitcoin was up 13.2% to $43,252, according to digital currency brokerage Coinbase.

In energy markets, benchmark U.S. crude rose 35 cents to $58.30 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.12 on Monday to $57.97. Brent crude, used to price oils, gained 40 cents to $60.96 per barrel in London. It advanced $1.22 the previous session to $60.56.

The dollar fell to 104.88 Japanese yen from Monday’s 105.22. The euro rose to $1.2080 from $1.2055.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link