By David Randall
NEW YORK, Jan 19 (Reuters) - Global equity benchmarks jumped and safe havens such as the dollar and U.S. Treasury bonds dipped Tuesday as investors expected Janet Yellen to use her Treasury Secretary confirmation speech to bolster the case for heavy fiscal stimulus.
The move would aim to mend the economic damage inflicted by the coronavirus pandemic on the world's largest economy.
Risk assets such as oil and emerging market stocks also rallied.
Yellen will tell the Senate Finance Committee that the government must "act big" with its next coronavirus relief package, according to her prepared statement seen by Reuters. strong (stimulus) package would psychologically lift the mood of the investor and a good many consumers are going to go out and spend," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.88% following broad gains in Asia and Europe.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 1.5% to a record high. on Monday confirmed that the world's second largest economy was one of the few to grow during 2020 and actually gathered pace as the year drew to a close. morning trading on Wall Street, the Dow Jones Industrial Average .DJI rose 203.83 points, or 0.66%, to 31,018.09, the S&P 500 .SPX gained 25.52 points, or 0.68%, to 3,793.77 and the Nasdaq Composite .IXIC added 126.87 points, or 0.98%, to 13,125.37.
Despite the risk-on mood on Tuesday, some dealers were wary before President-elect Joe Biden's inauguration on Wednesday, fearing more far-right mob violence.
Wall Street is also bracing for tougher regulations now that the Democrats control the Senate, with Biden set to nominate two consumer champions to top financial agencies. foreign exchange markets, the U.S. dollar slipped from close to its highest in nearly a month as caution set in before Yellen's speech, where she is expected to reaffirm commitment to a market-determined exchange rate.
The dollar index =USD fell 0.321%, with the euro EUR= up 0.47% to $1.2133. The euro EUR=D3 rose 0.5% to $1.212 after touching a six-week low of $1.2052 in the previous session.
Benchmark 10-year notes US10YT=RR last fell 5/32 in price to yield 1.1125%, from 1.097% late on Friday
Spot gold XAU= added 0.1% to $1,839.21 an ounce.
Optimism that government stimulus will buoy global economic growth and oil demand lifted crude oil prices. U.S. crude CLc1 rose 0.8% to $52.78 per barrel and Brent LCOc1 was at $55.76, up 1.84% on the day.
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http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar
http://tmsnrt.rs/2egbfVh Emerging markets
http://tmsnrt.rs/2ihRugV MSCI All Country World Index Market Cap
http://tmsnrt.rs/2EmTD6j
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