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Global Stocks Hit All Time High On Stimulus Optimism Ahead Of Fed Meeting

Another overnight session, and – predictably – futures are higher in keeping with the most glaringly obvious market trend since 2016 of stocks surging during overnight US trading (while trading flat in regular trading hours).

Alongside world stocks which rose to a fresh record high on Wednesday ahead of today’s Fed meeting – the last for 2020 – on optimism a fiscal deal is imminent after congressional leaders from both parties met for several hours yesterday and afterwards reported that they are making progress with Mitch McConnell said nobody is leaving Washington for a break until a deal is completed, which should happen “soon.”  The dollar reached its lowest in more than two and a half years, on the prospect of effective coronavirus vaccines; the 10-year Treasury yield was at 0.9262% and gold gained.

Futures were higher across the board with trader confidence building on the back of stronger European PMI data, the vaccine rollout and the prospect for more U.S. stimulus. E-minis were up 10 points, or 0.3%, at 7am, briefly rising above 3,700 and just shy of all time highs. Dow E-minis were up 93 points, or 0.31%. Nasdaq 100 E-minis were up 31 points, or 0.23%.

The MSCI world stock index rose 0.4% to a new all time high of 636.64. The index has climbed 15% since the beginning of November, propelled by trillions of dollars worth of global stimulus.

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