LONDON/SYDNEY: Global stocks eyed a fresh record high on Monday as signs of economic recovery in Asia, recent strong corporate earnings and hopes of a COVID-19 vaccine bolstered investor sentiment.
"The markets get the new trading week off to a solid start, which is encouraging given all the excitement generated in the last seven days by news of vaccine breakthroughs," said AJ Bell investment director Russ Mould.AdvertisementU.S. stock futures in turn pointed to a positive start for Wall Street later in the day.
Amid all the optimism, European government bond yields also fell back with Italian benchmark 10-year yields down 3 basis points.Not every asset was swept up by the rising tide, however, with the dollar flat against a basket of currencies, weighed down by fresh data over the weekend showing an increase in the number of COVID-19 cases.While rising cases of the coronavirus were a risk, Morgan Stanley strategists urged investors to"keep the faith" in their 2021 outlook note.
Besides the virus, Brexit trade talks were chief among European investors' concerns on Monday, with hopes for a breakthrough ebbing slightly to leave sterling weaker against the dollar and the euro.