Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

REFILE-GLOBAL MARKETS-Global stocks rise on recovery hopes

Published 01/25/2021, 05:29 PM
Updated 01/25/2021, 06:50 PM
© Reuters.

© Reuters.

(Amends lede, corrects 'records' in lede to 'record')
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

By Ritvik Carvalho
LONDON, Jan 25 (Reuters) - Global shares rose to levels just
shy of record highs on Monday, as optimism over a $1.9 trillion
U.S. stimulus plan outweighed rising COVID-19 cases and delays
in vaccine supplies.
European stock markets opened higher, with the pan-European
STOXX 600 .STOXX up 0.3%. The continent's 50 biggest stocks
were also up 0.3% .STOXX50 . .EU
Germany's DAX rose 0.2% .GDAXI , Italy's FTSE MIB index
jumped 0.6% and Britain's FTSE 100 .FTSE rose 0.1%. Spain's
IBEX .IBEX and France's CAC 40 .FCHI faltered, down 0.1%
each.
A rally in U.S. tech stocks to near record highs on Friday
helped fuel gains in their counterparts in Asia and Europe. A
European basket of tech stocks gained 1.2% .SX8P . In Asia,
Chinese tech giant Tencent soared 11% 0700.HK .
MSCI's All Country World index, which tracks stocks across
49 countries, was up 0.3% on the day. .MIWD00000PUS
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.
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 lock 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.
Global COVID-19 cases are inching towards 100 million with
more than 2 million dead. Despite the recent outperformance in tech stocks, investors
have reiterated views that cyclical and value stocks will
outperform as economies recover.
"While renewed lockdowns and mobility restrictions around
the world have supported 2020 stay-home beneficiaries, we do not
think the rotation into cyclicals is over," said Mark Haefele,
chief investment officer at UBS Global Wealth Management.
Haefele said a broadening economic recovery, a normalization
of economic activity as vaccination programmes continue, and
attractive valuations for emerging-market stocks relative to
developed markets were reasons for UBS shifting its preference
to emerging markets.
On Friday, the Dow .DJI fell 0.57%, the S&P 500 .SPX
lost 0.30% and the Nasdaq .IXIC added 0.09%. The three main
U.S. indexes closed higher for the week, with the Nasdaq rising
over 4%.
"Small/Mid (SMID) cap earnings were more impacted by the
pandemic, and we project an earnings rebound more than 2x larger
than the S&P 500," said BoFA strategists in a note.
"Historically, when Democrats control both the White House
and Congress, SMID-cap returns have exceeded large cap. Also,
SMID-caps are more domestically-oriented, which should benefit
from on-shoring and infrastructure spending."
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
.MIAPJ0000PUS rose to 726.46, 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 .N225 rebounded from falls in early trading
to be up 0.7%.
Australian shares .AXJO added 0.4% after the country's
drug regulator approved the Pfizer/BioNTech COVID-19 vaccine
with a phased rollout likely late next month. Chinese shares rose, with the blue-chip CSI300 index
.CSI300 up 1.1%. Hong Kong's Hang Seng index .HSI leapt
nearly 2% led by technology stocks.
Rebounding sentiment in markets put further pressure on the
dollar, =USD which eased 0.1% to 90.163 against a basket of
currencies. Elsewhere in currencies, major pairs were trapped in
a tight range as markets awaited the Federal Reserve's Wednesday
meeting.
The euro EUR= was flat at $1.2167, while sterling GBP=
was last up at $1.3697. FRX/ The Japanese yen JPY= was flat
at 103.76 per dollar.
In commodities, Brent LCOc1 gained 0.65% to $55.77 a
barrel and U.S. crude CLc1 rose 0.75% to $52.66.
Gold fell 0.1% to $1,850 an ounce. XAU=


<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Emerging markets http://tmsnrt.rs/2ihRugV
Global asset performance http://tmsnrt.rs/2yaDPgn
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.