S&P 500 futures rose 0.4% on Thursday as investors bet Democrat-led house will enable President-elect Joe Biden borrow and spend heavily, reports Reuters. Bonds tumbled, paving the way for risk-on assets with other safe havens like the Japanese yen also losing ground.
- U.S. Treasuries edged lower after Democrat victories in two Georgia races, after rising as high as 1.066% on Wednesday
- The dollar gained 0.6% on Thursday to recover from near three year lows reached on Wednesday after Georgia’s results.
- Analysts project rising Treasury yields will benefit the dollar against euro and yen but will remain weaker to commodity currencies such as the Aussie and emerging market currencies.
- Growth-linked sectors from energy to miners rose on more U.S. stimulus prospects, despite U.K. shares moving into negative territory.
- Europe’s Euro STOXX 600 gained 0.2%, with indexes in Frankfurt and Paris rising by 0.4% and 0.6%, respectively.
- The MSCI world equity index, which tracks shares in almost 50 countries, rose 0.2%.
- Earlier, MSCI’s broadest index of Asia-Pacific shares outside Japan had risen 0.4%, and Japan’s Nikkei hit its highest since 1990.
- Copper, a barometer for global growth, gained 0.3% to rise near an 8-year high.
Global stocks and the dollar are currently gaining. SPY is up 0.50% on premarket, STOXX Euro 600 is up 0.29%, MSCI WORLD IDX is up 0.24%, CSI 300 Index is up 1.77%, EURUSD is down 0.38%
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