Global markets firmer ahead of Biden's inauguration

LONDON: World stock markets rose Wednesday as investors awaited the inauguration of Joe Biden and took heart from comments by his Treasury nominee Janet Yellen on pushing through the new president's coronavirus stimulus package.

Wall Street stocks pushed higher at the opening bell, with the Dow gaining 0.3 percent.

In early afternoon deals in Europe, Frankfurt rose 0.8 percent and Paris 0.5 percent while London added just 0.2 percent as the pound hit a new 2.5-year peak against the dollar.

Asia enjoyed a broadly positive session, after bumper gains on Wall Street following a long weekend break.

The euro meanwhile sagged against the dollar as dealers eyed Italy's political turmoil on the eve of an interest rate decision from the European Central Bank.

Later on Wednesday, Biden will be sworn in as the 46th US president, drawing a curtain on the most tumultuous administration of modern times and charting a new course to tackle Covid-19 and unite a splintered nation.

Outgoing President Donald Trump, whose efforts to combat the Covid-19 pandemic and console its victims have been widely criticised, will snub the ceremony.

"The pomp and ceremony of inauguration day has come with a similarly chipper outlook," said IG analyst Joshua Mahony.

"European markets... (are) looking forward with optimism, with Joe Biden's inauguration marking the end of a four-year period that married up both Brexit and global trade uncertainty.

"With Trump and Brexit negotiations in the rear-view mirror, markets are faced with a four-year stint of greater stability and less uncertainty."

Investors set aside concerns over the Covid-19 crisis -- although the disease continues to cast a shadow as governments keep lockdowns in place.

On Tuesday, Yellen took centre stage as she was grilled by senators for her Treasury secretary confirmation hearing.

She did not disappoint. In comments flagged beforehand, Yellen said that to give the world's top economy the best chance for recovery, lawmakers must pass the new administration's $1.9 trillion spending package.

She also reasserted the president-elect's intention to keep the pressure on China.

Yellen told lawmakers that China was "our most important strategic competitor" and accused it of "undercutting American companies" by offering illegal subsidies, dumping products at below-market prices, stealing intellectual property and erecting barriers to US exports.

The comments suggest the new administration intends to maintain pressure on Beijing, after Trump kicked off a trade war between the two superpowers.

However, secretary of state nominee Antony Blinken separately told senators that while he thought "Trump was right in taking a tougher approach to China... I disagree very much with the way he went about it in a number of areas".

Key figures around 1430 GMT -

London - FTSE 100: 0.2 percent at 6,723.01 points

Frankfurt - DAX 30: UP 0.8 percent at 13,920.20

Paris - CAC 40: UP 0.5 percent at 5,623.65

EURO STOXX 50: UP 0.7 percent at 3,723.01

New York - Dow: UP 0.3 percent at 31,017.13

Tokyo - Nikkei 225: DOWN 0.4 percent at 28,523.26 (close)

Hong Kong - Hang Seng: UP 1.0 percent at 29,962.47 (close)

Shanghai - Composite: UP 0.5 percent at 3,583.09 (close)

Euro/dollar: DOWN at $1.2097 from $1.2129 at 2200 GMT on Tuesday

Dollar/yen: DOWN at 103.77 yen from 103.90 yen

Pound/dollar: UP at $1.3666 from $1.3630

Euro/pound: DOWN at 88.53 pence from 88.99 pence

West Texas Intermediate: UP 1.4 percent at $53.72 per barrel

Brent North Sea crude: UP 1.2 percent at $56.57 per barrel