GLOBAL MARKETS-Stimulus Helps Investors Bypass Trump Impeachment Shakeup

GLOBAL MARKETS-Stimulus Helps Investors Bypass Trump Impeachment Shakeup

LONDON, Jan 14 (Globe Live Media) – Investors were bypassing the second impeachment trial against outgoing US President Donald Trump and focused on media reports on Thursday that said President-elect Joe Biden will reveal a new program of tax incentives of up to $ 2 trillion.

* Hopes around the huge fiscal spending package boosted most of the big stock markets. Japan’s Nikkei index hit a three-decade high in Asia and Europe opened 0.4% higher as traders ignored the possibility of a further collapse of the Italian government.

 

* The bond market was beginning to show signs of selling again.

* The yield on 10-year US Treasury bonds – the global benchmark for borrowing costs – rose two basis points to 1.11% as traders viewed a $ 2 trillion package in aid for COVID-19 fueled by the Biden administration will further raise the country’s debt levels.

 

* European returns were contained by the region’s strict lockdowns due to COVID-19, which raised bets on more bond purchases from the European Central Bank, but inflationary expectations rose slightly.

 

* Chinese data showed that the country’s exports grew more than expected in December – pointing to strong global demand – while machinery orders from Japan increased for the second month in a row.

* China’s top-notch stocks fell from a 13-year high they reached on Wednesday as investors took profit-taking.

 

* Shares of tech giants Alibaba, Tencent and Baidu in Hong Kong Square rose sharply after sources told Reuters and the Wall Street Journal that plans to extend a ban on investment in US stocks were scrapped .

* Brent crude futures were down 0.5% at $ 55.75 a barrel and US West Texas Intermediate (WTI) futures were trading at $ 52.70.

 

* Spot gold, which has suffered from rising U.S. bond yields, was down 0.2% at $ 1,840 an ounce, well below the two-month high of $ 1,959 last week. .

* Biden could outline his economic plans later Thursday and Federal Reserve Chairman Jerome Powell will also speak, which could boost Treasury yields.

 

(Additional reporting by Dhara Ranasinghe in London and Tom Westbrook in Singapore; Edited in Spanish by Ricardo Figueroa)

 


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Ben Oakley
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