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World stock markets start off record highs in 2021

World stock markets start off record highs in 2021World stock markets start off record highs in 2021

Global stock markets hit record highs on Monday, the first trading day of the new year, as investors hoped the vaccine rollout would eventually lift the global economy ravaged by the COVID-19 pandemic.

The Chinese yuan rose nearly 1% against the dollar, while the dollar fell to its lowest level against a basket of peers since April 2018. Bitcoin hovered above $ 32,000 amid skyrocketing 800% gains since mid-March.

European stocks opened higher with Britain’s FTSE 100 up 1.75%, Germany’s DAX 1.1%, Spain’s IBEX 1.3% and Italy’s FTSE MIB 0.7%.

The MSCI All-Country World Index, which tracks stocks in 49 countries, hit an all-time high and surged nearly half a percentage point the day after trading began in London.

Asian stock markets also rallied, although Japan’s Nikkei 225 lost profit, falling 0.4% after the prime minister Yoshihide Suga (Yoshihide Suga) confirms government is considering declaring a state of emergency in Tokyo and three neighboring prefectures due to the spread of coronavirus.

Despite optimism about vaccines, investors remain wary of coronavirus, which continues to spread amid the discovery of a new strain.

On Monday, the UK began vaccinating its population with the COVID-19 vaccine developed by the University of Oxford and AstraZeneca.

Since there is a time lag between the full rollout of the vaccine and the global economic recovery, investors will rely on central banks to keep money cheap..

«We continue to believe equities have room for growth in 2021 as monetary and fiscal stimulus measures set the stage for this, and we expect strong earnings growth as the global economy recovers.», – said Mark Hafele (Mark Haefele), Chief Investment Officer, UBS Global Wealth Management.

The minutes of the December meeting of the Federal Reserve System should be published on Wednesday and should contain more details on what their further political orientations will be and whether the purchase of assets will be increased this year..

E-Mini S Futures&The P 500 were stable after also hitting a record high.

In December, manufacturing activity in China continued to accelerate, although the PMI did not reach the forecast of 53.0.

Production in Japan stabilized for the first time in two years in December, while in Taiwan it improved..

US wages for December are due Friday, with median projections for only a small increase for 100,000 jobs.

Analysts such as Barclays predict 50,000 job cuts, shock to market hopes for a quick recovery.

«A number of incoming indicators of activity point to a slowdown in economic growth as the year ends, including data on labor markets, where initial claims rose during the December observation period.», – said the economist Michael Gapin (Michael Gapen) in a note.

Such a drop would add pressure on the Fed to continue easing measures, which will put another burden on the dollar, which is already sagging under the weight of the huge US budget and trade deficit..

In terms of currencies, the euro rallied to $ 1.2281, facing a profit-taking late last week when it peaked since the beginning of 2018 at $ 1.2309. In 2020, it grew by almost 9%.

The dollar fell to 102.80 yen. Sterling strengthens to $ 1.3690, last seen in mid-2018.

The fall in the dollar supported gold, as a result of which the metal strengthened by 1.3% to $ 1,931 an ounce.

Oil prices continued to rise after a couple of months of solid growth: the price of Brent crude exceeded $ 53 per barrel. American oil rose 2% to $ 49.52 per barrel.