Stocks Extend Gains as Investors Focus on Stimulus: Markets Wrap

(Bloomberg) -- Global markets are showing resilience after a day of violence rocked the U.S. Capitol, with investors firmly focused on the prospect for more economic stimulus and the likelihood that calm will prevail as Joe Biden takes the presidency.

S&P 500 futures were up 0.5% and stock benchmarks across Asia and Europe were in the green. Treasury yields stayed above 1% and the yen weakened. In a sign that traders are still willing to pile on risk, Bitcoin shot above $37,000 to another record high.

Biden was formally recognized by Congress as the next U.S. president early Thursday, a day after demonstrators overpowered police and stormed through the Capitol building in a scene of unprecedented turmoil in Washington. Present Donald Trump released a statement pledging “an orderly transition” after Congress certified the results.

Despite the disruption, markets showed little sign of worry and trading throughout the Asia day was normal. Bullish themes, such as the prospect for more U.S. stimulus spending in a Democrat-controlled Congress and the vaccine rollout, have dominated investor attention.

Rising Treasury yields have been a key market theme this week, with strategists debating how high rates could go. In minutes published Wednesday, Federal Reserve officials unanimously backed holding the pace of asset purchases steady when they met last month.

Shares of Twitter Inc. dropped slightly in U.S. pre-market trading after the platform suspended Trump’s account.

In Europe, sentiment was boosted by an unexpected rise in German factory orders pre-lockdown in November. U.K. grocer J Sainsbury Plc shares rallied 4.1% after seeing its strongest Christmas on record. On the downside, Ryanair Holdings Plc declined 1.3% after the budget airline operator cut its full-year traffic forecast, citing new coronavirus restrictions.

The dollar rose against all its Group-of-10 peers. The Polish zloty appreciated as much as 0.6% to trade below 4.50 per euro, a level that’s seen as a possible trigger-point for central bank intervention.

These are some of the main moves in markets:

Stocks

• Futures on the S&P 500 Index rose 0.2% as of 9:58 a.m. London time.
• The Stoxx Europe 600 Index gained 0.2%.
• The MSCI Asia Pacific Index climbed 0.8%.
• The MSCI Emerging Market Index increased 0.2%.

Currencies

• The Bloomberg Dollar Spot Index gained 0.4% to 1,118.15.
• The euro fell 0.5% to $1.2271.
• The British pound dipped 0.1% to $1.3597.
• The Japanese yen weakened 0.5% to 103.57 per dollar.

Bonds

• The yield on 10-year Treasuries rose two basis points to 1.05%.
• The yield on two-year Treasuries gained less than one basis point to 0.14%.
• Germany’s 10-year yield increased less than one basis point to -0.52%.
• Britain’s 10-year yield climbed two basis points to 0.266%.

Commodities

• West Texas Intermediate crude gained 0.8% to $50.89 a barrel.
• Gold weakened 0.1% to $1,915.95 an ounce.

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