The market meltup just won’t let up, with futures and global stocks reaching new record highs on Wednesday as sentiment was stoked after Treasury Secretary Steven Mnuchin unveiled a surprise $916 billion pandemic-relief package proposal (which was quickly slammed by Pelosi and Schumer) coupled with now daily positive news on COVID-19 vaccines, overshadowing fears about resurgent coronavirus cases while sterling made gains as British and European leaders meet for talks on a Brexit trade deal. Treasuries dropped as did the dollar, while the Chinese yuan surged above 6.50 for the first time in 2 years.
MSCI’s index of world stocks rose to a record 635.65, up 0.23%. The index has been on a roll for weeks, gaining 15% since the beginning of last month. Global equities were “energized” after the White House’s surprise re-entry into pandemic-relief talks with a $916 billion proposal late on Tuesday that opened a potential new path to a year-end deal.
As of 7:30am Dow e-minis were up 76 points, or 0.28%, S&P 500 e-minis were up 5 points, or 0.14% to a new all time high, and Nasdaq 100 e-minis were down 15 points, or 0.08%. U.S. banks JPMorgan Chase and Citigroup as well as industrial bellwethers Boeing and 3M rose about half a percent. Car-battery producer QuantumScape surges 27% in premarket trading, adding to a 31% jump on Tuesday.