London — World stocks rose to record highs on Wednesday as drugmakers rolled out Covid-19 vaccines and US congressional leaders expressed optimism about a stimulus deal, with the upbeat mood dragging the safe-haven dollar to two-and-a-half-year lows.
“You have all three of these creating positivity and optimism,” he said, though he added that the impact of a new set of lockdowns in Europe was still to be felt. Sebastien Galy, macro strategist at Nordea Asset Management, said the prospect of a stimulus deal “is rightfully welcomed by the markets, but the size of the fiscal package is the issue”.Progress on rolling out vaccines continued after Moderna's Covid-19 vaccine appeared set for regulatory authorisation this week.Analysts expect guidance later in the day on when and how the Fed might change its bond purchases.
The euro rose above $1.22 for the first time since April 2018, and German government bond yields, which tend to rise on positive news on the economic outlook, hit a one-week high after data showed better-than-expected business activity in the bloc this month.