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GLOBAL MARKETS-Stock market bull run continues, sterling faces Brexit test

Published 2020-12-09, 01:05 a/m
© Reuters.

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

* Stocks continue to set new record highs

* Sterling stares down endgame for Brexit talks

* U.S. crude stockpile increase hits oil prices

By Stanley White

TOKYO, Dec 9 (Reuters) - Asian shares rose to a record high and U.S. stock futures gained on Wednesday as investors tracked positive news on COVID-19 vaccines and ongoing efforts to launch more fiscal stimulus.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.65%. At one point the index reached 647.78, an all-time peak.

MSCI's gauge of stocks across the globe .MIWD00000PUS also hit a record high.

Australian shares .AXJO gained 0.61%. Japan's Nikkei .N225 rose 1.27% to approach a 29 1/2-year high. Sentiment got an added boost after Japanese data pointed to a rebound in capital expenditure. Korean stocks .KS11 also jumped by 1.6% to trade near a record high. Shares in China .CSI300 bucked the trend and fell 0.68% on profit taking.

Euro Stoxx 50 futures STXEc1 rose 0.45%, German DAX futures FDXc1 were up 0.37%, and FTSE futures FFIc1 in London added 0.48%.

U.S. S&P 500 e-mini stock futures ESc1 rose 0.23% after shares on Wall Street notched new record highs on Tuesday, boosted by positive vaccine news and seeming progress on U.S. stimulus talks.

The British pound was little changed before make-or-break talks on a trade deal between Britain and the European Union.

"While hopes are still alive that a fresh stimulus package for the United States will be agreed on soon, it is looking less likely a Brexit deal will be made with negotiators from both sides acknowledging a deal may not be achieved," analysts at ANZ Bank wrote in a research memo.

"The next 24 hours will be critical and is likely to cause market volatility depending on what is or isn't agreed."

The Dow Jones Industrial Average .DJI rose 0.35% on Tuesday, the S&P 500 .SPX gained 0.28% and the Nasdaq Composite .IXIC added 0.5%. policymakers continued to negotiate over additional stimulus to help offset the economic impact of the pandemic while pursuing a stopgap government funding bill.

Leaders in both parties remain adamant a deal must be struck but are still working through sticking points, including aid to state and local governments and business liability protections. steady march of positive news on COVID-19 vaccines helped lift investor spirits.

Britain on Tuesday became the first Western nation to begin a wide vaccination campaign, and Johnson & Johnson (NYSE:JNJ) JNJ.N reported it could obtain late-stage trial results for a single-dose vaccine in January, earlier than expected.

Meanwhile, Pfizer Inc (NYSE:PFE) PFE.N cleared another hurdle when the U.S. health regulator released documents flagging no new safety or efficacy concerns. the looming prospect of a "no deal" Brexit weighed on sentiment for sterling GBP=D3 , which last traded at $1.3379 and at 90.68 pence per euro EURGBP=D3 .

British Prime Minister Boris Johnson will meet Ursula von der Leyen, president of the EU's executive European Commission, for dinner in Brussels on Wednesday to try and close gaps their negotiators have struggled with for months. a basket of currencies =USD the dollar sat at 90.802, which is just above a two-and-a-half-year low it hit on Friday as optimism about vaccines lured short sellers.

Highlighting the dollar's weakness, the offshore Chinese yuan CNH=D3 strengthened past 6.5000 to reach the strongest level in more than two years. The onshore yuan CNY=CFXS also traded near its highest in more than two years.

Benchmark U.S. 10-year Treasury yields US10YT=RR edged up to 0.9394% on Wednesday. Some dealers say expectations for more fiscal spending could push yields up more in the future.

Brent crude futures LCOc1 fell 0.27% to $48.71 a barrel, while U.S. West Texas Intermediate futures CLc1 fell 0.24% to $45.49 following a rise in U.S. crude inventories. O/R

Spot gold XAU= fell from a two-week high to $1,858.26 per ounce as the start of vaccine treatment reduced safe harbour demand for the precious metal.

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http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar

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http://tmsnrt.rs/2EmTD6j

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