Stocks lag, dollar advances on COVID-19 concerns

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Investors are wary about towering valuations amid questions over the efficacy of COVID-19 vaccines and as US lawmakers continue to debate a coronavirus aid package.

Equity markets have scaled record highs in recent days on bets vaccines will start to reduce infection rates worldwide and on a stronger US economic recovery under President Joe Biden.

US stocks were mixed. The Nasdaq index hit a record high on hopes of bumper earnings later this week from mega-cap technology companies, but the Dow Jones Industrial Average index struggled to keep pace. The pan-European STOXX 600 index reversed early gains and finished 0.8% lower. The German DAX fell 1.7%, France CAC 40 was down 1.6%, and the UK's FTSE 100 declined 0.8%.All eyes were on Washington, DC, as US lawmakers agreed that getting COVID-19 vaccines to Americans should be a priority even as they locked horns over the size of the pandemic relief package.

The dollar advanced to a near one-week high against a basket of currencies, as volatility in stock markets around the globe sapped investors' appetite for riskier currencies.

 

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