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GLOBAL MARKETS-U.S. stocks touch record highs, Treasury yields rise on stimulus, Brexit

Published 29/12/2020, 03:09 am
© Reuters.
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* All three major U.S. stock indexes open at all-time highs

* U.S. Treasury yields tick higher; dollar wavers

* DAX hits all-time peak

* Trump signs $2.3 trillion spending package

* Brexit relief, vaccine roll-out also support sentiment

* 2020 asset performance http://tmsnrt.rs/2yaDPgn

(Updates to U.S. open, changes dateline to NEW YORK from MILAN, changes byline)

By Stephen Culp

NEW YORK, Dec 28 (Reuters) - All three major U.S. stock indexes opened at record highs on Monday, and Treasury yields rose as long-awaited stimulus and Brexit trade deals fueled investors' risk appetite.

U.S. equities followed their European counterparts higher in a broad rally, with small- and mid-cap stocks outperforming.

President Donald Trump reversed course on Sunday by signing a $2.3 trillion fiscal relief and spending package into law, heading off a potential government shutdown and setting the stage for Democrats in Congress to push for more robust $2,000 direct payments to millions of Americans. a positive tone to the U.S. market and part of that is the signing of the stimulus package by Trump, which appeared to be in doubt but has finally been accomplished," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

Britain reached a trade agreement with the European Union on Thursday, days before leaving one of the world's largest trading blocs, and urged businesses to prepare for disruptions resulting from the completion of Brexit. Brexit deal is big news, and a big relief because it's dragged on for such a long time," Ghriskey added. "And we have a deal that everyone accepts, it's a good deal for everyone."

The Dow Jones Industrial Average .DJI rose 292.14 points, or 0.97%, to 30,492.01, the S&P 500 .SPX gained 33.39 points, or 0.90%, to 3,736.45 and the Nasdaq Composite .IXIC added 70.75 points, or 0.55%, to 12,875.49.

European shares enjoyed their fourth straight session of gains following the U.S. stimulus and Brexit trade deals. ongoing rollout of coronavirus vaccines also buoyed sentiment, with Pfizer Inc (NYSE:PFE) PFE.N announcing that it expects to complete distribution of 200 million doses in Europe by September. in Britain were closed on Monday in observance of the Boxing Day holiday.

The pan-European STOXX 600 index .STOXX rose 0.73% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.59%.

Emerging market stocks lost 0.25%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.17% lower, while Japan's Nikkei .N225 rose 0.74%.

U.S. Treasury yields crept higher and the yield curve steepened, stoked by risk-on sentiment in the wake of the stimulus bill becoming law. 10-year notes US10YT=RR last fell 7/32 in price to yield 0.9531%, from 0.93% late on Thursday.

The 30-year bond US30YT=RR last fell 25/32 in price to yield 1.6999%, from 1.666% late on Thursday.

The dollar slipped against a basket of world currencies as the euro gained strength as investors began pricing out Brexit risk. dollar index .DXY fell 0.12%, with the euro EUR= up 0.09% to $1.2215.

The Japanese yen weakened 0.28% versus the greenback at 103.80 per dollar, while Sterling GBP= was last trading at $1.3454, down 0.69% on the day.

Crude prices steadied as hopes for a demand rebound helped offset the prospect of increased OPEC+ output. crude CLcv1 fell 0.21% to $48.13 per barrel and Brent LCOcv1 was last at $51.35 per barrel, up 0.12% on the day.

Gold pared its early gains as the dollar recovered its losses amid the stocks rally. gold XAU= added 0.6% to $1,887.81 an ounce.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates in 2020

http://tmsnrt.rs/2egbfVh 2020 asset performance

http://tmsnrt.rs/2yaDPgn

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