EUROPEAN STOCKS UP, INCREASED U.S. COVID-19 VACCINE ROLLOUT RAISE RECOVERY HOPES

EUROPEAN STOCKS UP, INCREASED U.S. COVID-19 VACCINE ROLLOUT RAISE RECOVERY HOPES

Euro stoxx 50 futures fell 0.03%, German DAX futures were up 0.03% and Britain’s FTSE  futures were up 0.18%, pointing to a subdued start to European trade.

Investors are betting that the incoming Biden administration would ramp up U.S. distribution of coronavirus vaccines and spend big on more stimulus, which will contribute to a global economic recovery and increased demand for commodities, analysts say.

Hugh Young, head of Asia Pacific at Aberdeen Standard Investments, said he expected the investor interest in Asia seen in the second half of 2020 to be sustained this year.

With seven days remaining in his term in office, Trump faces impeachment over accusations that he incited insurrection in a speech to his followers last week before hundreds of them stormed the Capitol, leaving five dead. Trump says his speech was appropriate.

An impeachment trial could proceed even after Trump leaves office on Jan. 20, but analysts say they don’t expect any further political turmoil in Washington to affect markets.

“Markets since the election have been quite strong because uncertainty factor has been removed,” said Peter Essele, head of portfolio management at Commonwealth Financial Network in Boston.

Yields on benchmark 10-year U.S. government debt fell to 1.1240% on Wednesday, down from an almost one-year high of 1.1870% reached in the previous session after a well-received auction of new 10-year notes.

The yield curve, which had reached the steepest since May 2017 on expectations for big fiscal stimulus under a new Democratic administration, narrowed slightly to 97.5 basis points.

The dollar nursed losses on Wednesday as a retreat in U.S. yields snuffed out its recent rebound.

Against the yen, the greenback fell 0.12% to 103.65. The dollar also edged lower to $1.3683 against the British pound.

The pan-European Stoxx 50 climbed down by 0.23%  to 3,612.13. In the cash markets, the DAX futures Germany was trading 0.08%  lower at 13925.06. CAC 40 futures in France climbed down by 0.20% to 5,650.97, while the FTSE 100 futures in the U.K. fell by 0.65% to 6754.11,at the time of writing.

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