* Bitcoin eases off record high
* Tokyo's Nikkei at 30-year high
* Copper hits 8-year high on recovery hopes
* US futures gain 0.5%
* World FX rates http://tmsnrt.rs/2egbfVh
By Huw Jones
LONDON, Feb 16 (Reuters) - Stocks in Europe flirted with
one-year highs on Tuesday, buoyed by hopes that rollout of the
COVID-19 vaccine and a huge U.S. stimulus package will translate
into a durable economic recovery and draw a line under a year of
lockdowns.
Oil prices jumped to a 13-month high as a deep freeze due to
a severe snow storm in the United States not only boosted power
demand but also threatened oil production in Texas.
Bitcoin was trading at $49,072.84 BTC=BTSP in Europe,
after hitting a new record high $60 shy of $50,000 earlier in
the day.
The pan-European STOXX 600 .STOXX was up 0.19%, after
hitting its highest on Monday since late February 2020.
"The big picture is that there is an awful lot of enthusiasm
for recovery when it comes to the vaccine programme," said
Michael Hewson, Chief Market Analyst CMC Markets.
The prospects for economic recovery lit up commodities, with
copper CMCU3 at $8,384.50, after hitting its highest since May
2012. The European mining index .SXPP was at its highest level
since July 2011.
Hospitality stocks could see more gains as restaurants,
hotels and pubs reopen in coming weeks. They should do well on
the back of the "staycation" trade, Hewson said.
EU fourth-quarter GDP figures and Germany's Zew economic
sentiment data were due on Tuesday.
But Hewson said most investors were ignoring numbers on past
economic performance, opting to look ahead to recovery on the
back of an easing of lockdown restrictions going into the
summer.
"Markets started the week in a risk-on mood, in light of
positive news relating to vaccine rollout. Risky assets
continued to rise, with stocks performing well in Europe,"
UniCredit analysts said in a note.
The euro EUR=EBS crept 0.2% higher to $1.2149.
On Wall Street, S&P500 futures ESc1 were up 0.46%. U.S.
10-year Treasury yields touched 1.25% for the first in almost a
year.
The U.S. dollar =USD at 90.229 was mired at a three-week
low as growing optimism about recovery sent investors into
riskier currencies, including the euro and British pound.
U.S. President Joe Biden is pushing ahead with his plan to
pump an extra $1.9 trillion in stimulus into the economy, in a
further boost to market sentiment.
NIKKEI RALLY
Market sentiment in Europe was helped by gains overnight in
Asian shares, with Japan's Nikkei blue chip index .N225 up
1.28% at a 30-year high.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS gained 0.44%.
In Hong Kong, the Hang Seng Index .HSI rose 1.9% to hit a
32-month high, while Australia's S&P/ASX200 .ASXJO gained
0.7%. Mainland Chinese markets will remain closed for the
holidays until Thursday.
Ord Minnett advisor John Milroy said while share markets
were positive, investors were becoming wary of the future risk
of inflation due to central bank and government stimulus
programmes in place around the world.
"There is a clear sense with rates staying low for some time
yet and investor appetite for equities staying strong we will
likely see markets hold up for some time yet," Milroy told
Reuters.
The bullish view on the economy lifted bond yields, with the
10-year U.S. Treasuries gaining to 1.23% US10YT=RR , their
highest since late March.
Investors are looking to the minutes from the U.S. Federal
Reserve's January meeting, due to be published on Wednesday, for
confirmation of its commitment to maintain its dovish policy
stance over the near future. That in turn is set to keep a tab
on bond yields.
Brent crude LCOc1 was flat at $63.28 a barrel, after
rising to its highest since January 2020 in the previous
session. U.S. West Texas Intermediate (WTI) crude CLc1 futures
gained 60 cents, or 0.7%, to $59.89 a barrel.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>