AVN 65.19 Decreased By ▼ -0.80 (-1.21%)
BAFL 29.76 Decreased By ▼ -0.24 (-0.8%)
BOP 4.43 Increased By ▲ 0.03 (0.68%)
CNERGY 3.63 Decreased By ▼ -0.07 (-1.89%)
DFML 12.53 Increased By ▲ 0.18 (1.46%)
DGKC 45.59 Decreased By ▼ -1.50 (-3.19%)
EPCL 46.95 Decreased By ▼ -0.15 (-0.32%)
FCCL 12.26 Decreased By ▼ -0.39 (-3.08%)
FFL 6.07 Increased By ▲ 0.37 (6.49%)
FLYNG 6.19 Decreased By ▼ -0.20 (-3.13%)
GGL 11.81 Decreased By ▼ -0.38 (-3.12%)
HUBC 68.62 Decreased By ▼ -0.87 (-1.25%)
HUMNL 5.74 Increased By ▲ 0.04 (0.7%)
KAPCO 25.29 Increased By ▲ 0.07 (0.28%)
KEL 2.10 Decreased By ▼ -0.05 (-2.33%)
LOTCHEM 25.42 Increased By ▲ 0.45 (1.8%)
MLCF 25.52 Decreased By ▼ -1.09 (-4.1%)
NETSOL 77.20 Decreased By ▼ -1.25 (-1.59%)
OGDC 86.83 Decreased By ▼ -2.73 (-3.05%)
PAEL 11.31 Increased By ▲ 0.06 (0.53%)
PIBTL 4.18 Increased By ▲ 0.03 (0.72%)
PPL 66.65 Decreased By ▼ -2.90 (-4.17%)
PRL 13.11 Decreased By ▼ -0.15 (-1.13%)
SILK 0.86 Decreased By ▼ -0.02 (-2.27%)
SNGP 41.21 Decreased By ▼ -1.27 (-2.99%)
TELE 8.11 Decreased By ▼ -0.11 (-1.34%)
TPLP 15.38 Decreased By ▼ -0.08 (-0.52%)
TRG 111.48 Decreased By ▼ -0.97 (-0.86%)
UNITY 14.16 Increased By ▲ 0.64 (4.73%)
WTL 1.21 Decreased By ▼ -0.04 (-3.2%)
BR100 4,103 Decreased By -81.8 (-1.96%)
BR30 14,841 Decreased By -266.3 (-1.76%)
KSE100 40,918 Decreased By -411.5 (-1%)
KSE30 15,043 Decreased By -308.8 (-2.01%)

Stocks surge on stimulus hopes; dollar depressed

  • US indices close at record highs.
  • MSCI all-country world index strikes all-time high.
  • Oil touches 9-month high.
  • Dollar hits two-year low.
  • Brexit hopes boosts sterling.
Published December 18, 2020
Follow us

NEW YORK: Global stocks hit record highs on Thursday, fueled by growing optimism that deals will be reached over a fresh US stimulus package and a post-Brexit trade deal between the United Kingdom and the European Union.

From stocks to safe-haven gold and volatile bitcoin, financial assets were in festive mood. Bitcoin hit another all-time high after first shattering the $20,000 level on Wednesday.

Oil also climbed, touching a nine-month high, with strong Asian demand adding to positive sentiment.

The US dollar was the day's standout loser, as the general risk-on mood sent the safe haven currency to 2-1/2-year lows against major peers.

US congressional negotiators were "closing in on" a $900 billion COVID-19 aid bill expected to include $600-$700 stimulus checks to individuals, lawmakers said on Wednesday.

Progress on a stimulus package overshadowed continued concerns over the economic impact of the pandemic, highlighted by US weekly jobless claims hitting a three-month high on Thursday and weak US retail sales data on Wednesday.

All the major US indices closed at record highs.

The Dow Jones Industrial Average rose 0.49% to end at 30,301.79 points, while the S&P 500 .SPX gained 0.57% to 3,722.43. The Nasdaq Composite climbed 0.84% to 12,764.

"Wall Street is completely focused on stimulus talks and ignored deteriorating US economic data," said Edward Moya, senior market analyst at OANDA in New York.

The dollar index, which tracks the greenback versus a basket of six currencies, fell 0.599 points or 0.66%, to 89.851.

"The dollar is reflecting the amount of debt that the US is assuming and that's probably going to increase as we continue to battle the pandemic," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

US Federal Reserve Chairman Jerome Powell vowed on Wednesday to keep pouring cash into markets until the US economic recovery is secure.

Bond traders, however, were disappointed he did not extend the Fed's purchase program deeper down the yield curve, and US Treasuries sold off at longer tenors, but others took it as a signal the bank will have their back.

The MSCI world stock index reached a new high, rising 4.74 points or 0.74%, to 641.84.

European stocks and the euro rallied for the fourth straight session as investors built up positions in riskier assets, anticipating a sharp economic recovery in 2021 backed by wider vaccine rollouts and ultra-easy monetary policy.

Europe's broad FTSEurofirst 300 index added 0.23%, at 1,533.

The British pound hit May 2018 highs on hopes of a post-Brexit trade deal. Sterling maintained gains despite senior British minister Michael Gove putting the chances of securing a trade deal with the EU at less than 50%.

The euro was last up 0.54% at $1.2263.

Brent crude futures settled up 42 cents at $51.50 a barrel, and touched a session high of $51.90. US West Texas Intermediate (WTI) crude futures rose by 54 cents to $48.36 a barrel, with a session high of $48.59.

Both benchmarks hit their highest since early March.

Gold prices rose to a one-month peak.

Spot gold prices rose $20.1179 or 1.08 percent, to $1,884.26 an ounce. US gold futures settled up 1.7% at $1,890.40.

Better-than-expected labor data in Australia pushed the Aussie as high as $0.7624, its strongest since mid-2018.

The Aussie is also riding high on surging prices for iron ore and a mood that has pushed currencies in Malaysia, Singapore, Thailand, Taiwan, Sweden and Norway to milestone peaks.

The kiwi rose to its strongest since early 2018 after New Zealand's economic growth beat expectations.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 4.29 points or 0.66 percent,%.

The yen was last down 0.36 percent, at $103.1100.


Comments are closed.

Stocks surge on stimulus hopes; dollar depressed

'PM wants difference between fuel prices paid by rich and poor to be Rs100'

Inflation could break further records, clock in above 34%: report

Rupee declines significantly, settles at 284.03 against US dollar

Citing security threats, Imran asks courts to conduct his hearings via video link

Smear campaign against COAS deserves ‘strongest condemnation’: PM Shehbaz

Ghandhara Tyre suspends operations as economic turmoil takes toll

Punjab police to respond with equal force if assaulted again by PTI supporters: Mohsin Naqvi

Gold bounces to 1-year high as banking sector concerns return to fore

Credit Suisse shares slump over 61% in premarket trading after UBS deal

Credit Suisse takeover, central bank action calm jittery markets