What happened in the economy in 2020 – Yahoo Canada Finance

Bloomberg

Stocks Fluctuate Near Record Highs; Dollar Slumps: Markets Wrap

(Bloomberg) — U.S. stocks churned near record highs as traders weighed optimism that government aid will bolster economic growth with concerns about how fast vaccines can be distributed. The dollar slumped with Treasuries.Health companies were among the best performers on the S&P 500 Index, which fluctuated after closing at a record high to start the week in the wake of a Covid-19 relief package. Gyrations in megacap stocks set the market’s direction in thin trading. A gauge of global equities touched an all-time high as the U.S. House backed President Donald Trump’s proposal to boost aid checks for individuals to $2,000 from $600, even though the effort is likely to fail in the Senate.In Europe, the Stoxx 600 rose as the FTSE 100 Index climbed about 2% in the first session since the U.K.’s Christmas Eve trade deal with the European Union. Uncertainty about what accord will be struck on financial services weighed on Lloyds Banking Group Plc, NatWest Group Plc and Barclays Plc.Elsewhere, crude oil rose as support from a weakening dollar helped offset a worsening short-term demand outlook. The pound recouped some of Monday’s decline.Investors are striking an upbeat attitude as 2020 comes to a close, with risk assets such as stocks, corporate bonds and Bitcoin near record highs even as the pandemic drags on and the pace of U.S. vaccine distribution comes under criticism. The S&P 500 is set to end the year more than 15% higher, with the Nasdaq Composite’s gains exceeding 40%.“Strong markets finish strong,” Tom Lee, co-founder and head of research at Fundstrat Global Advisors, wrote in a note. “We see positive risk/reward for equities into YE and with strong follow through continuing through much of” next year’s first quarter.On the coronavirus front, more restrictions are being imposed to fight the spread of the new, more infectious strain. Covid-19 hospitalizations in the U.S. reached new highs, while Southern California plans to extend a regional stay-at-home order. South Korea’s daily toll of fatalities rose to a record, while Thailand reported its first virus death since November.Here are some key events coming up:U.S. pending home sales and goods trade balance data are due Wednesday.U.S. initial jobless claims figures are published Thursday.Most global stock markets are closed Friday for New Year’s Day.These are the main moves in markets:StocksThe S&P 500 Index climbed 0.1% as of 10:55 a.m. New York time.The Stoxx Europe 600 Index gained 0.8%.The MSCI Asia Pacific Index jumped 1.4%.The MSCI Emerging Market Index increased 1%.CurrenciesThe Bloomberg Dollar Spot Index sank 0.4%.The euro increased 0.3% to $1.2256.The British pound gained 0.3% to $1.3492.The Japanese yen strengthened 0.3% to 103.55 per dollar.BondsThe yield on 10-year Treasuries rose one basis point to 0.93%.Germany’s 10-year yield dipped less than one basis point to -0.58%.Britain’s 10-year yield fell four basis points to 0.21%.CommoditiesWest Texas Intermediate crude gained 1.1% to $48.13 a barrel.Gold strengthened 0.3% to $1,879.90 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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