Stocks Push Higher Amid U.S. Stimulus Wrangling: Markets Wrap

(Bloomberg) -- Asian equities climbed after a fresh record for their U.S. counterparts, as hopes for a stimulus deal tempered concern about a surge in coronavirus cases. The dollar edged lower.

Shares climbed across the region with South Korean stocks outperforming. S&P 500 futures ticked higher after the benchmark closed at an all-time high. Treasury Secretary Steven Mnuchin presented a new $916 billion Covid-19 relief proposal to House Speaker Nancy Pelosi, who hailed progress in the negotiations though deemed parts of the plan as “unacceptable.” The Nasdaq 100 advanced for a 10th straight day, the longest rally in about a year. Benchmark Treasury yields held at about 0.93%.

Elsewhere, the pound pared declines after the U.K. dropped controversial parts of an internal bill that would have given it the power to unilaterally override the Brexit divorce treaty. Oil fluctuated. Pfizer Inc. jumped as U.S. regulators gave early indications they may grant emergency-use authorization to its vaccine.

With time running short the year-end break approaches, just as U.S. Covid-19 cases surpass 15 million, investors remain hopeful a stimulus deal can be struck. Democrats have opposed Senate Majority Leader Mitch McConnell’s insistence on giving employers a shield from lawmakers, while he has been among Republicans blasting Democratic demands for assistance to state and local authorities as a bailout.

Meantime, machinery orders in Japan jumped at the fastest pace in more than a decade, adding to signs that the global economy is contining to recover from the pandemic. Elsewhere, Chinese consumer prices declined for the first time since 2009.

The opportunities are “in equities and credit, so we are overweight, we are risk on,” Richard Lacaille, global chief investment officer at State Street Global Advisors, said on Bloomberg TV. “We know that we will be tested again next year in terms of Covid and elsewhere.”

Here are some key events coming up:

• Thursday brings the European Central Bank policy decision and a press briefing from Christine Lagarde. Economists widely expect the central bank to increase and extend its pandemic bond-buying program.
• The U.S. Food and Drug Administration meets to discuss the vaccine made by Pfizer/BioNTech on Thursday. If the FDA authorizes emergency use, Health & Human Services Secretary Alex Azar said vaccine distribution could begin within 24 hours.

Here are the main moves in markets:

Stocks

• S&P 500 futures increased 0.2% as of 12:01 p.m. in Tokyo. The index gained 0.3% on Tuesday.
• Hong Kong’s Hang Seng index rose 1.3%.
• Japan’s Topix index climbed 0.9%.
• South Korea’s Kospi index rose 1.4%.
• Shanghai Composite was flat.
• Euro Stoxx 50 futures rose 0.5%.

Currencies

• The Bloomberg Dollar Spot Index slipped 0.1%.
• The euro bought $1.2111, up 0.1%.
• The yen was little changed at 104.16 per dollar.
• The offshore yuan rose 0.1% to 6.5138 per dollar.

Bonds

• The yield on 10-year Treasuries rose less than one basis point to 0.93%.
• Australia’s 10-year yield held at 1.02%.

Commodities

• West Texas Intermediate crude slipped 0.3% to $45.47 a barrel.
• Gold slid 0.2% to $1,866.36 an ounce.

©2020 Bloomberg L.P.