Global stocks rally on US stimulus hopes

Wednesday, 30 December 2020 00:00 - - {{hitsCtrl.values.hits}}

LONDON, REUTERS: Global shares rose for the fourth straight day on Tuesday and oil followed suit as hopes of fresh U.S. stimulus teed up a strong end to the year for riskier assets and had the dollar eyeing two-and-a-half-year lows.

The MSCI World Index was up 0.4% at 1203 GMT, while U.S. stock futures pointed to a similar move at the open on Wall Street, tracking broad-based gains in Europe and overnight in Asia.

Across Europe, Britain’s blue-chip shares led regional markets higher on their first day of trading since the Christmas Eve agreement of a trade deal with the European Union.

The FTSE 100 rose 2.1%, on course for its fourth straight day of gains, led by companies in a range of sectors likely to benefit from the deal, including Intertek and Diageo.

Propping up the London market were banks and other financial services.

The launch of the European Union’s vaccination program, hoping to end the widespread lockdowns that have stalled economies across the bloc, saw that positive sentiment shared with the continent, where beaten-down travel and leisure stocks rose 2.3%.

The global stock gains and likely higher U.S. stock market open remain underpinned by hopes a $2.3 trillion stimulus package signed into law by President Trump on Sunday will be approved by the Senate.

The package covers $1.4 trillion in spending to fund government agencies and $892 billion in COVID-19 relief, including $2,000 relief cheques to help cushion the economic impact of the pandemic.