Stocks rose in the global market on Monday as investors focused on the progress of British trade negotiations with the European Union and new rounds of aid to US companies and workers.
EU chief negotiator Michel Barnier said on Monday that he believes a Brexit trade deal is possible now that the remaining disputes have been narrowed down to just two.
The UK FTSE 100 rose 0.1% to 6,553.91 and the Paris CAC 40 rose 0.9% to 5,555.20. Germany’s DAX rose 0.8% to 13,225.65. The US market was looking forward to profits with the future of S & P. The 500 will rise 0.5% and the Dow future will rise 0.7%.
Barnier said the nine-month negotiations resulted in finding a settlement on fair competition rules and fishing rights. Both sides are wobbling on the brink of Brexit’s unconsensual departure. They promised final promotion before January 1st, when the transition period ends after the UK leaves the block on January 31st.
A quarterly Tankan survey by the Bank of Japan showed at the beginning of Monday that corporate sentiment improved sharply, with expectations of recovery from a year-long recession.
The main indicator of the business condition of a major manufacturer has risen from minus 27 to minus 10. It’s still in the negative territory, but it’s improved significantly from the last few quarterly reports as Japan fought the coronavirus pandemic.
Tankan measures a company’s sentiment by subtracting the number of companies that say it’s bad from the companies that say it’s good.
Japan’s Nikkei 225 Index rose 0.3% to 26,732.44. In Hong Kong, the Hang Seng Index fell 0.4% to 26,389.52. The Shanghai Composite Index rose 0.7% to 3,369.12 and South Korea’s Kospi fell 0.3% to 2,762.20. Australia’s S & P; / ASX 200 was up 0.3% to 6,660.20.
The US market ended with a weak move last week. Benchmarks have been further pulled from Friday’s recent highs as the outlook for another aid package from Washington has diminished, but the surge in virus incidents could cause further damage to the already-hit economy.
The $ 900 billion aid package proposed by a bipartisan parliamentary group has essentially collapsed due to continued partisan quarrels. But after President Donald Trump signed a temporary government-wide financing bill, avoided a late-night federal closure, and bought Congressional time to reunite and negotiate a reunion on COVID-19 aid. There was a report that negotiations could continue on Monday.
“Given that these negotiations have been going on since July, the market may be bored with tears, but even if the stimulus door closes before Christmas, it could change the positive mood of the vaccine. “Axi’s Stephen Innes said in a comment.
The S & P; 500 fell 0.1% on Friday to 3,663.46, the third straightest decline since it hit a record high on Tuesday. After a strong rise for two weeks, it fell 1% to end the week.
The Dow Jones Industrial Average rose 0.2% to 30,046.37, and the technology-intensive Nasdaq fell 0.2% to 12,377.87. The Russell 2000 Index rose 0.6% to 1,911.70.
Treasury yields have fallen sharply. This shows that traders are trying to reduce their exposure to higher risk holdings. Yields on 10-year Treasuries on Monday were 0.91%, up from 0.89% on Friday.
Investors are monitoring the latest information on the deployment of coronavirus vaccines that may help defeat a surge in infectious diseases that can hinder recovery from business outages and other pandemic-related shocks.
The first of many COVID-19 vaccine vials packed in the freezer was brought to distribution sites across the United States on Sunday as the country approached a terrifying new milestone of 300,000 pandemic deaths.
Extensive vaccination takes months, and the virus epidemic has tightened regulations on businesses. With the recent surge and rising unemployment, the slow economic recovery seems to be at a standstill.
Wall Street is also awaiting a special election in Georgia in early January. This could change the balance of power in the US Senate.
In another transaction, electronic trading on the New York Mercantile Exchange saw benchmark US crude rise 56 cents to $ 47.13 a barrel. It fell 11 cents to $ 46.57 a barrel on Friday. The international standard Brent crude was $ 50.60 a barrel, up 63 cents.
The dollar fell from 104.03 to 103.86 late Friday. The euro rose from $ 1.2115 to $ 1.2148.
Contributed by Raf Casert, Associated Press writer in Brussels.
Copyright © 2020 The Washington Times, LLC.
Brexit, global share is on the rise ahead of negotiations on stimulus
Source link Brexit, global share is on the rise ahead of negotiations on stimulus