Dollar rebounds despite Fed independence worries; euro slips
* S&P 500 futures up slightly on mixed pandemic news
* Eyes on U.S. Congress for stimulus
* British pound lifted by extension of Brexit talks
* Asia stock markets this year: https://tmsnrt.rs/2zpUAr4
By David Henry
NEW YORK, Dec 14 (Reuters) - Asian stocks came under
pressure on Tuesday following a mixed Wall Street session, as
concerns about increasing COVID-19 deaths, infections and
lockdowns overshadowed optimism about the start of coronavirus
vaccinations.
Australian S&P/ASX 200 .AXJO lost 0.12% in early trading
while Japan's Nikkei 225 futures NKc1 fell 0.13%. E-mini
futures for the S&P 500 EScv1 rose 0.21%.
The lackluster start to the Asian day comes after the S&P
500 .SPX closed down 0.4%, the Nasdaq Composite gained 0.5%
and the Dow Jones Industrial Average hit a record high but fell
back 0.6% for the day. The first U.S. vaccination was given to an intensive care
nurse on Monday, the same day the country passed the grim
milestone of 300,000 lives lost. COVID-19 deaths in the U.S. are occurring at a record rate
2,462 per day on a seven-day average, according to a Reuters
count. Meanwhile, new waves of the pandemic forced Germany, the
Netherlands and London back to stricter lockdowns while cases in
Japan and South Korea also surged.
Some traders said markets have already factored in optimism
about vaccines.
"We've been trading off the same vaccine headlines for three
or four months," said Dennis Dick, a trader at Bright Trading
LLC. "This market is 100% relying on this vaccine."
Still, negotiators in the U.S. Congress appeared to be
finally near an agreement on Monday on a massive government
spending deal with a fresh round of aid to help the economy.
In foreign exchange markets, the British pound held its 1.2%
gains against the dollar after the U.K. and Europe agreed to
continue Brexit talks. The pound was last up 0.04% to $1.3327 GBP= and the dollar
continued to hover near two-year lows.
U.S. Treasury yields were relatively stable ahead of the
Federal Reserve's two-day policy meeting on Tuesday.
The benchmark 10-year yield US10YT=RR on Monday afternoon
was last at 0.898%, within last week's trading range. The yield
curve steepened modestly with the spread between two-year and
10-year yields US2US10=TWEB rising to 77.9 basis points.
The Fed meeting is mostly expected to end with nothing more
than refinements to its strategy of holding down interest rates
to support the economy through the pandemic.
The Bank of England and the Bank of Japan also close out
their 2020 meetings this week.
Gold prices slid on Monday in another day in which the
prospects for vaccinations seemed to weigh on its appeal as a
safe haven from economic trouble. Spot gold XAU= was 0.1%
lower at $1,828.94 per ounce late on Monday.
Oil prices were little changed in choppy trading on Monday
as persistent oversupply in the market largely offset hopes that
a rollout of coronavirus vaccines will lift global fuel demand.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
Asia stock markets: https://tmsnrt.rs/2zpUAr4
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