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- Global stocks rose on Friday as new talks over U.S. federal coronavirus relief raised investor sentiment.
- Senate Minority Leader Chuck Schumer and House Speaker Nancy Pelosi spoke on Thursday for the first time since the November election, adding momentum to talks over a $ 908 billion stimulus deal. dollars.
- Senate Majority Leader Mitch McConnell was reportedly “encouraged” by Democrats walking away from the $ 2.4 trillion proposal they made in October.
- Oil prices hit their highest since the start of the pandemic after the OPEC + group agreed to increase production only gradually from January.
- Visit the Business Insider homepage for more stories.
Global stocks rose on Friday after Democratic House Speaker Nancy Pelosi and Republican Senate Leader Mitch McConnell raised new hopes for a stimulus package to shield the U.S. economy from the impact of a resurgence of the COVID-19 virus.
The two leaders adopted a $ 908 billion coronavirus relief plan on Wednesday. They spoke for the first time since Thursday’s presidential election, with McConnell saying they both wanted to see a result on two issues: federal relief and the spending bills needed to prevent the government shutting down. , according to the New York Times.
Futures contracts on the Dow Jones, S&P 500 and Nasdaq rose 0.4%.
Stimulus talks have added life to cyclical trade, with consumer durables and energy among the top performing sectors in the S&P, Deutsche Bank analysts said. McConnell would need to agree to bring any vote to the Senate, but analysts said he was “encouraged” Democrats were withdrawing from their $ 2.4 trillion bill at the end of October.
Read more: Wall Street analyst explains why ecommerce stocks are “ just beginning ” and will continue to experience massive growth even after vaccines are distributed – and says these 4 are best positioned for gains during the season. holiday shopping.
Investors also digested a Wall Street Journal report on Pfizer’s deployment plans, showing the U.S. drug maker only expects to ship half of the COVID-19 vaccines originally slated for this year due to Supply Chain.
“Short-term uncertainties will prove to be less significant to risk than positive vaccines and fiscal progress,” said Mark Haefele, chief investment officer at UBS Global Wealth Management, adding that “markets will welcome a return to US. United more multilateral (and less agitated) approach to China from the new Biden administration. “
London’s FTSE 100 hit its highest level in nine months, up 0.7%, when the first shipment of coronavirus vaccines from Pfizer and BioNTech arrived in the UK.
The Euro Stoxx 50 rose 0.3% and the German DAX rose 0.01%.
Oil prices hit their highest levels since the start of the pandemic after the OPEC + producer group reached an agreement to reduce crude production cuts in 2021 more gradually than many expected. Brent futures were up 2% to $ 49.70 per barrel, and West Texas Intermediate futures were up 2% to $ 46.60 per barrel.
The Organization of the Petroleum Exporting Countries, led by Saudi Arabia, and its partners, including Russia, Kazakhstan, Oman and others, will increase production by 500,000 barrels per day from January. The current agreement to cut production by 7.7 million barrels per day expires at the end of the month.
The group agreed in the spring to a record joint reduction of 7.9 million barrels per day to support the price of crude from its historic crash.
Asian markets were mostly subdued, with China’s Shanghai Composite rising 0.07%, Hong Kong’s Hang Seng 0.4% and Japan’s Nikkei 0.2%.
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