Equities mixed with focus on vaccine, virus, stimulus and Brexit
Last updated on: 08 December,2020 09:16 am
The resurgence of the virus has already forced governments to reimpose lockdowns.
HONG KONG (AFP) - Stock markets swung Tuesday as investors weighed the rollout of vaccines and hopes for US stimulus talks against soaring virus cases and China-US tensions, while the pound dipped with post-Brexit trade talks on a knife-edge.
With Britain planning to begin giving people the jab from Tuesday and the US preparing to approve inoculations soon, the disease continues to run rampant across the United States and Europe while also flaring up again in parts of Asia.
The resurgence of the virus has already forced governments to reimpose lockdowns or strict containment measures, putting fresh pressure on the global economy, which has been ravaged this year.
After a blockbuster November, traders are now taking stock ahead of what many predict will be a bright 2021 that could see a strong economic rebound and market rally.
On Wall Street, the Dow and S&P 500 retreated from records, though the Nasdaq hit another all-time high with tech firms the main beneficiaries of stay-at-home orders.
Analysts said the next leg-up for equities would be news that US lawmakers had finally reached an agreement on a new rescue package for the battered economy.
Democrats have largely thrown their support behind a bipartisan proposal worth $908 billion while there is optimism Republicans will also come on board soon.
Republican Senator Bill Cassidy, who helped put the plan together, said he was confident Donald Trump and Senate Majority Leader Mitch McConnell will come "on board".
"President Trump has indicated that he would sign a $908 billion package -- there’s only one $908 billion package out there and it’s ours," he told Fox News on Sunday.
"The pain of the American people is driving this and I’m optimistic that both of those leaders will come on board," he added.
And Democratic senator Dick Durbin said: "This is our last chance before Christmas and the end of the year to bring relief to families across America in the midst of a public health crisis. We’ve got a few remaining issues. I think we can work them out."
In morning trade, Asia markets were mixed, with Hong Kong, Tokyo, Shanghai and Seoul all down but Sydney, Jakarta and Wellington up. Singapore and Taipei were flat.