GLOBAL MARKETS-COVID Trade recovery moves stocks and ignites commodities

* Bitcoin cuts its all-time high

* Tokyo Nikkei at its highest for 30 years

* Copper hits 8-year high on recovery hopes

* US futures gain 0.5%

* Global exchange rates tmsnrt.rs/2egbfVh

LONDON, Feb. 16 (Reuters) – Shares in Europe flirted with yearlong highs on Tuesday, supported by hopes that the rollout of the COVID-19 vaccine and a huge US stimulus package will translate into a lasting economic recovery and draw a line under a lock year.

Oil prices soared to a 13-month high as a deep freeze due to a severe snowstorm in the United States not only boosted demand for electricity, but also threatened oil production in Texas.

Bitcoin was trading at $ 49,072.84 in Europe, after hitting a new high of $ 60 below $ 50,000 earlier today.

The pan-European STOXX 600 rose 0.19%, after hitting its highest Monday since late February 2020.

“The big picture is that there is tremendous enthusiasm for the recovery when it comes to the immunization program,” said Michael Hewson, chief market analyst CMC Markets.

The outlook for an economic recovery brightened commodities, with copper at $ 8,384.50, after hitting its highest level since May 2012. The European mining index was at its highest level since July 2011.

Hotel stocks could register further gains with the reopening of restaurants, hotels and pubs in the coming weeks. They should do well with the staycation business, Hewson said.

EU fourth-quarter GDP figures and Germany Zew’s economic sentiment data were due on Tuesday.

But Hewson said most investors were ignoring the numbers on past economic performance, opting for an early recovery on the back of an easing of foreclosure restrictions over the summer.

“The markets started the week in a risky mood, in light of the positive news about the vaccine rollout. Risky assets continued to rise, with stocks performing well in Europe, ”UniCredit analysts said in a note.

The euro climbed 0.2% to $ 1.2149.

On Wall Street, S & P500 futures were up 0.46%. Yields on 10-year US Treasuries hit 1.25% for the first time in nearly a year.

The US dollar at 90.229 was bogged down to a three-week low as growing optimism about the recovery pushed investors into riskier currencies including the euro and pound sterling.

US President Joe Biden is continuing his plan to inject an additional $ 1.9 trillion in stimulus into the economy, to further boost market sentiment.

NIKKEI RALLY

Market sentiment in Europe was helped by overnight gains in Asian stocks, with the Japanese Nikkei blue chip index up 1.28% to a 30-year high.

The largest MSCI index of Asia-Pacific stocks outside of Japan rose 0.44%.

In Hong Kong, the Hang Seng Index rose 1.9% to a 32-month high, while the Australian S & P / ASX200 was up 0.7%. Mainland Chinese markets will remain closed during the holidays until Thursday.

Ord Minnett adviser John Milroy said that while stock markets were positive, investors were wary of future inflation risk due to stimulus programs by the central bank and the government in place around the world.

“There is a clear sentiment with rates remaining low for some time to come and investor appetite for stocks remaining strong, we will likely see the markets hold for quite some time,” Milroy told Reuters.

The bullish outlook on the economy pushed bond yields higher, with 10-year U.S. Treasuries reaching 1.23%, their highest level since late March.

Investors are looking to the minutes of the US Federal Reserve’s January meeting, due for release on Wednesday, to confirm its commitment to maintain its accommodative policy for the near future. This in turn should keep an eye on bond yields.

Brent was flat at $ 63.28 a barrel, after hitting its highest level since January 2020 in the previous session. U.S. West Texas Intermediate (WTI) crude futures gained 60 cents, or 0.7%, to $ 59.89 a barrel.