Asia stocks firm as U.S. economic support pushes Nasdaq to record

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Asian stocks were set for gains on Thursday as progress toward a long-awaited U.S. stimulus package and a pledge by the Federal Reserve to keep interest rates low helped the Nasdaq benchmark to a fresh record high.

FILE PHOTO: A man wearing a protective face mask, following an outbreak of the coronavirus, talks on his mobile phone in front of a screen showing the Nikkei index outside a brokerage in Tokyo, Japan, February 26, 2020. REUTERS/Athit Perawongmetha

“Chairman Powell assured the world that the Fed will extend its asset purchase program if economic growth slows,” said Michael McCarthy, chief strategist at broker CMC Markets in Sydney. “The re-assurance saw the markets continue on their optimistic path,” he said, but added that some bond traders had been looking for more, prompting a selloff that steepened the U.S. curve.

The Fed said it will keep its benchmark overnight interest rate near zero until an economic recovery is complete and it will now tie its program of monthly government bond purchases to that same goal. Strategists at Commonwealth Bank of Australia said the dollar’s downward trend will continue because of the weight of the U.S. current account deficit and the appeal an improving world economy will give to other currencies.

 

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3:40 AM · 17 дек. 2020 г.·True Anthem ЗЕ 🚩

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