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Asia stocks look up as global markets show confidence in economic growth

Published 16/12/2020, 10:32 am
© Reuters.
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* S&P 500 futures up slightly

* U.S. dollar slide continues

* U.S. stocks gained 1% on Tuesday

* Federal Reserve policy announcement due

* Asia stock markets this year: https://tmsnrt.rs/2zpUAr4

By David Henry

NEW YORK, Dec 15 (Reuters) - Asian stocks were poised for gains on Wednesday as global markets moved with confidence that vaccinations and additional monetary and fiscal support from governments will drive economic growth.

Australian S&P/ASX 200 futures YAPcm1 rose 0.77% in early trading.

{{178|Japan's NiNikkei 225 futures NKc1 added 0.04%.

E-mini futures for the S&P 500 EScv1 rose 0.05%.

The day started with momentum from gains on Tuesday in U.S. and European stocks, gold, oil and U.S. Treasury yields. Optimism for a trade deal on Brexit contributed to a weaker dollar against the British pound and the euro. lockdowns will impact short-term economic activity but Brexit talks and the US aid package discussions remain alive providing a degree of longer-term optimism," strategists at ANZ Research wrote.

Goldman Sachs (NYSE:GS) strategists said, "This remains a friendly backdrop for cyclical and risky assets."

Markets will now look to the U.S. Federal Reserve for new projections on whether the economy will suffer a double-dip recession or is on the cusp of a vaccine-inspired boom. The central bank is to release a statement on Wednesday, with a press conference set for the afternoon. analysts expect Fed Chair Jerome Powell will underscore the increasing short-term risks to the U.S. economy.

The Fed could also give guidance on when and how it might change its bond purchases, impacting views on longer-term yields and exchange rates.

On Tuesday, the Dow Jones Industrial Average .DJI rose 1.13% to 30,199.31 points. The S&P 500 .SPX gained 1.29% and the Nasdaq Composite .IXIC climbed 1.25% to 12,595.06, exceeding its previous record close on Dec. 8. pan-European STOXX 600 index .STOXX rose 0.25%.

Economically sensitive U.S. stock sectors, including consumer discretionary .SPLRCD and materials, .SPLRCM led gains as some investors viewed the recent spike in coronavirus infections and deaths and the grim November jobs report as drivers of a COVID-19 relief and stimulus bill.

Optimism over a $1.4 trillion U.S. spending package increased after House of Representatives Speaker Nancy Pelosi invited other top congressional leaders to meet late on Tuesday to hammer out a deal to be enacted this week. on vaccine rollouts continued on Tuesday after Moderna Inc's COVID-19 vaccine appeared set for regulatory authorization this week. The U.S. also expanded on Tuesday its rollout of the newly approved vaccine developed by Pfizer Inc. (NYSE:PFE) PFE.N and BioNTech SE BNTX.O . U.S. government spending drove spot gold XAU= up as much as 1.4% on Tuesday afternoon to $1.852.36 per ounce as U.S. Gold futures GCv1 settled up 1.3% at $1,855.30. regarded as a hedge against inflation and currency debasement, has risen over 22% so far this year amid unprecedented government stimulus globally.

Despite a report from the International Energy Agency that any impact of vaccines on oil demand is several months away,

Brent crude oil on Tuesday afternoon LCOc1 gained 30 cents to $50.59 a barrel and U.S. West Texas Intermediate crude CLc1 rose 43 cents to $47.42. Global assets

http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Emerging markets

http://tmsnrt.rs/2ihRugV MSCI All Country Wolrd Index Market Cap

http://tmsnrt.rs/2EmTD6j Asia stock markets:

https://tmsnrt.rs/2zpUAr4

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