Global stocks advance, dollar weakens ahead of Fed

Markets were green across the board. The Stoxx 600 Index rose 0.9%, notching a third day of gains, and the DAX Index outperformed. The euro strengthened and German 10-year bond yields rose.

Global stocks rallied, with confidence among investors building on the back of stronger German factory data, the vaccine rollout and the prospect for more US stimulus.

In the US, S&P 500 futures were higher and the dollar weakened as investors waited for details from the Federal Reserve’s recent meeting. (AP file photo)

Markets were green across the board. The Stoxx 600 Index rose 0.9%, notching a third day of gains, and the DAX Index outperformed. The euro strengthened and German 10-year bond yields rose.

In the US, S&P 500 futures were higher and the dollar weakened as investors waited for details from the Federal Reserve’s recent meeting. Economists say the Fed may deliver fresh guidance on its asset purchases, now $120 billion a month, tying how long the buying will continue to substantial progress in meeting its goals of full employment and 2% inflation.

Investors are growing increasingly confident that Democratic and Republican lawmakers will clinch a bill based on a $748 billion bipartisan proposal that would inject cash directly into the economy as prior benefits begin to expire at the end of the year.

“Investors are starting to buy in to the vaccine rollout,” said Maarten Geerdink, head of European equities at NN Investment Partners. “With further approvals expected shortly and the European recovery fund being approved, investors are willing to look beyond the current spike of cases and heightened lock down and are focusing and positioning for next year.”