Stocks

Global shares edge up on news Trump signs aid bill

Reuters TOKYO | Updated on December 28, 2020

Global shares ticked up on Monday as a source said US President Donald Trump signed into law a $2.3 trillion pandemic aid and spending package he had until now refused to sign. US S&P futures last traded up 0.4 per cent.

The futures had earlier reversed losses after a cryptic tweet by Trump - "Good news on Covid Relief Bill. Information to follow" - helped offset worries about further delay in stimulus spendings. A source later said he had approved the bill.

Japan's Nikkei inched up 0.4 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent, though trade is slow with many markets still closed for holiday. “It is positive for markets that we no longer have a chaos over stimulus, considering there was a chance of a partialgovernment shutdown,” said Masahiro Ichikawa, chief strategistat Sumimoto Mitsui DS Asset Management.

“But on the other hand, markets have talked about thatstimulus for a long time and I would say most of it has beenalready priced in.”

Trump had refused to sign into law the pandemic aid and spending package that the Congress has passed, demanding stimulus checks for struggling Americans be increased.

Trump's threat to not sign the package had already shuttered an emergency unemployment aid programme and threatened a partial federal government shutdown at midnight on Monday.

US bond yields edged up in its first trade after Christmas, with the 10-year US Treasuries yield up 0.6 basispoint at 0.930 per cent.

The rollouts of Covid-19 vaccines are also bolstering hopes of more economic normalisation next year, with Europe launching a mass vaccination drive on Sunday.

That offset alarms over a new highly infectious variant of the virus that has been raging in the south-east of England and was confirmed in many other countries, including Japan, France and Canada, over the weekend.

Bitcoin extends gain

Major currencies were little changed. The euro traded at $1.2204, a tad below its 2-1/2-year high of $1.22735, while the yen changed hands at 103.56 per dollar. The British pound changed hands at $1.3565, not farfrom a 2-1/2-year high of $1.3625 hit earlier this month afterBritain and the European Union reached an agreement on tradeframework after Brexit.

Bitcoin extended gains over the weekend to reach a new high of $28,377.94 before stepping back to $26,457.32,bringing the total value of the cryptocurrency in circulation to over $500 billion. Oil prices edged down a tad, with US crude futuresdown 0.8 per cent at $47.85 per barrel.

Published on December 28, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like