Stocks Enter 2021 at Record High; Bitcoin Jumps: Markets Wrap

(Bloomberg) -- Global stocks traded near a record and U.S. equity futures fluctuated as trading got underway in Asia on Monday. Gold climbed and Bitcoin’s relentless rally continued.

Australian shares rose at the open and S&P 500 contracts edged up after the U.S. index closed at an all-time high on Dec. 31. Most markets around the world were shut on Jan. 1. Bitcoin topped $34,000 on Sunday after surging almost 50% in December.

China’s stocks will be in focus as Chinese oil majors may be next in line for delisting in the U.S. after the New York Stock Exchange said last week it would remove the Asian nation’s three biggest telecom companies.

Equities are beginning the new year at rich valuations amid expectations that widespread vaccine distribution in 2021, central bank support and government aid will reignite economic growth and boost corporate profits. The MSCI All Country World Index of stocks ended at a record in 2020 after rising 14% last year.

“Stock markets are headed higher and they are headed higher without the old traditional valuation techniques” as long as the Fed “keeps the liquidity bubble going,” David Kotok, Cumberland Advisors chairman and chief investment officer, said on Bloomberg TV.

Read: Dizzying Valuations, IPO Craze Tick Boxes on Bubble Checklist

Elsewhere, oil slipped. OPEC warned of risks to the oil market from the resurgent pandemic, a day before the group and its allies meet to consider another increase in production.

On the coronavirus front, the U.S. vaccine rollout is picking up speed after a slow start and could be fully on track within a week or so, said Anthony Fauci, the nation’s top infectious disease expert. New York’s cases slowed a day after the state passed 1 million total infections. U.K. Prime Minister Boris Johnson said tougher lockdown measures in England, including school closures, will probably be needed as cases of the new virus variant continue to surge.

What to watch this week:

• OPEC+ alliance energy ministers hold their monthly virtual gathering Monday to decide whether to add as much as 500,000 barrels a day to production.
• China Caixin manufacturing PMI due Monday.
• In the U.S. Tuesday, the state of Georgia holds a run-off election for two U.S. Senate seats that will decide control of the chamber.
• U.S. Congress meets to count electoral votes and declare the winner of the 2020 Presidential election Wednesday.
• FOMC minutes out Wednesday.
• U.S. unemployment report for December is due Friday.

These are the main moves in markets:

Stocks

• S&P 500 futures rose 0.1% of 8:46 a.m. in Tokyo. The S&P 500 Index advanced 0.6% Thursday.
• Nikkei 225 futures were little changed, earlier.
• Australia’s S&P/ASX 200 rose 0.9%.

Currencies

• The yen was at 103.30 per dollar.
• The offshore yuan rose 0.2% to 6.4924 per dollar.
• The euro climbed 0.3% to $1.2248.
• The British pound was steady at $1.3678.

Bonds

• The yield on 10-year Treasuries fell one basis point to 0.91% on Thursday.
• Australia’s 10-year bond yield was at 1%.

Commodities

• West Texas Intermediate crude fell 0.2% to $48.43 a barrel.
• Gold added 0.8% to $1,913.81 an ounce.

©2021 Bloomberg L.P.