Japan's Nikkei rises 0.3 per cent to sit just shy of a 29-year peak. — Reuters pic
December S&P 500 futures were one point short of a record top and, after the Nasdaq printed a record close yesterday, Nasdaq 100 futures climbed higher into uncharted territory today. European futures rose. “My suspicion is markets are inclined to extend this rally for two reasons,” said Vishnu Varathan, head economist at Mizuho in Singapore, citing US monetary policy support and the good news on the horizon as vaccines roll out globally.
Bond traders were disappointed he didn't extend the Fed's purchase program deeper down the yield curve, and US Treasuries sold off at longer tenors, but everybody else took it as a signal that the bank will have their back. The proposal is expected to include US$600-US$700 stimulus checks and extended unemployment benefits and cannot come soon enough as US Covid-19 infections soar to record levels.
The Aussie is also riding high on surging prices for iron ore and a mood that has pushed currencies in Malaysia, Singapore, Thailand, Taiwan, Sweden and Norway to milestone peaks.