Global Stocks Climb to Record; Dollar Dips: Markets Wrap

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(Bloomberg) — Global stocks rose to another record and equity futures advanced Wednesday as investors again took comfort from improving virus trends and the push for more U.S. stimulus. The dollar edged lower.

Tencent Holdings Ltd. fueled gains in Hong Kong as an Asian equity gauge hit an all-time high. U.S. and European futures climbed. Treasuries were steady. On Tuesday, the S&P 500 index snapped a six-day winning streak.

Platinum rallied to a six-year high on expectations it will benefit from tight supplies, investment demand and the global recovery. Oil was steady after the longest run of gains in two years. Bitcoin fluctuated after easing back from a peak sparked by Tesla Inc.’s investment in the cryptocurrency.

© Bloomberg Precious metal surges to six-year high

Vaccination efforts and President Joe Biden’s push for huge U.S. stimulus are continuing to underpin bets on a recovery from the pandemic. At the same time, a ramp up in inflation expectations is intensifying debate on whether price pressures could imperil global equities sitting on stretched valuations.

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“It seems like right now the story is just getting started, and the momentum is building behind it, and that story includes the reopening, vaccines, the downward trend now in some of the virus cases we’ve been seeing, supported by the stimulus talks and the Fed still on the side lines,” Mona Mahajan, investment strategist at Allianz Global Investors, said on Bloomberg TV.

Elsewhere, Twitter Inc. rose in extended trading after sales topped estimates. Cisco Systems Inc. fell post market as it reported a big decline in enterprise sales.

Here are some key events coming up:

EIA crude oil inventory report comes Wednesday.Sweden will set monetary policy on Wednesday.Federal Reserve Chair Jerome Powell will speak on a webinar Wednesday.The U.S. consumer price index comes Wednesday.Lunar New Year public holidays begin in nations across Asia, with China breaking for a week.Bank of Russia’s policy decision comes Friday.

These are the main moves in markets:

Stocks

S&P 500 futures added 0.4% as of 6:20 a.m. in London. The index fell 0.1% on Tuesday.Hong Kong’s Hang Seng rose 1.7%.Japan’s Topix index gained 0.3%.South Korea’s Kospi index rose 0.9%.Australia’s S&P/ASX 200 Index gained 0.5%.Euro Stoxx 50 futures added 0.5%.

Currencies

The Bloomberg Dollar Spot Index dipped 0.1%.The euro bought $1.2124.The offshore yuan was at 6.4277 per dollar.The yen traded at 104.60 per dollar.

Bonds

The yield on 10-year Treasuries remained at 1.16%.

Commodities

West Texas Intermediate crude slipped 0.1% to $58.32 a barrel.Gold was at $1,841.86 an ounce, up 0.2%.

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