Global markets are showing resilience after a day of violence rocked the U.S. Capitol, with investors firmly focused on the prospect for more economic stimulus and the likelihood that calm will prevail when Joe Biden takes the presidency.
S&P 500 futures were up 0.5% and stock benchmarks across Asia and Europe were in the green. Treasury yields stayed above 1% and the yen weakened. In a sign that traders are still willing to pile on risk, Bitcoin shot above $37,000 to another record high.
Biden was formally recognized by Congress as the next U.S. president early Thursday, ending two months of failed challenges by his predecessor, Donald Trump. Investors have been focused on the policy implications of the Democrats winning control of the U.S. Senate and the prospect for more stimulus spending to fuel economic growth.
Share markets in Asia appeared to look past the unrest and chose “to focus on the prospects for more stimulus coming from the outcome in Georgia,” said Shane Oliver, head of investment strategy and chief economist at AMP Capital.
In the latest minutes released Wednesday, the Federal Open Market Committee issued guidance it would continue purchases of bonds at least at its current pace until the economic recovery had made “substantial further progress.”
Meanwhile, shares of Twitter Inc. dropped in after-hours trading after the platform suspended President Donald Trump’s account for egging on a violent mob that stormed the Capitol building.
These are some of the main moves in markets:
- Futures on the S&P 500 Index gained 0.4% as of 8:57 a.m. London time.
- The Stoxx Europe 600 Index increased 0.2%.
- The MSCI Asia Pacific Index climbed 1%.
- The MSCI Emerging Market Index rose 0.4%.
- The Bloomberg Dollar Spot Index gained 0.2% to 1,116.04.
- The euro fell 0.3% to $1.2297.
- The British pound was little changed at $1.3609.
- The Japanese yen weakened 0.3% to 103.40 per dollar.
- The yield on 10-year Treasuries jumped two basis points to 1.06%.
- The yield on two-year Treasuries gained less than one basis point to 0.14%.
- Germany’s 10-year yield was unchanged at -0.52%.
- Britain’s 10-year yield rose one basis point to 0.253%.
- West Texas Intermediate crude gained 1% to $51.01 a barrel.
- Gold was little changed at $1,918.93 an ounce.
— With assistance by Rita Nazareth, Vildana Hajric, and Joanna Ossinger