The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany. File photo: REUTERS
Germany’s DAX rose 0.2%, Italy’s FTSE MIB index jumped 0.6% and the UK’s FTSE 100 rose 0.1%. Spain’s IBEX and France’s CAC 40 faltered, down 0.1% each. All eyes are on Washington DC as US lawmakers agreed that getting the Covid-19 vaccine to Americans should be a priority even as they lock horns over the size of the US pandemic relief package.
Haefele said a broadening economic recovery, a normalisation of economic activity as vaccination programmes continue, and attractive valuations for emerging-market stocks relative to developed markets were reasons for UBS shifting its preference to emerging markets. “Historically, when Democrats control both the White House and Congress, SMID-cap returns have exceeded large cap. Also, SMID-caps are more domestically orientated, which should benefit from on-shoring and infrastructure spending.”
Australian shares added 0.4% after the country’s drug regulator approved the Pfizer/BioNTech Covid-19 vaccine with a phased rollout likely late next month.