GLOBAL MARKETS-Global equities soar to new records, bonds hit 11-month lows, on stimulus hopes

By David Randall
NEW YORK, Jan 8 (Reuters) - A global equities rally pushed
Japan's Nikkei and U.S. stock benchmarks to new records on
Friday while safe havens such as Treasuries and gold sold off as
investors looked past political unrest in the United States and
focused on further stimulus plans to mend the economic damage of
the coronavirus pandemic.
Risky assets including oil, emerging market stocks and
bitcoin jumped, while a sell-off in 10-year U.S. Treasuries
pushed their yields to the highest levels since March.
The surge came despite data released by the Labor Department
that showed the U.S. economy shed 140,000 jobs in December, the
first time that payrolls decreased in eight months. investors expect that President-elect Joe Biden's incoming
administration will pass bigger fiscal stimulus and
infrastructure spending plans.
"The economic reality stands in stark contrast to the
markets' view of the world – we are all living in the present,
with a badly damaged economy, while the market is living in the
future, expecting a post-COVID or at least post-vaccine world,"
said Chris Zaccarelli, chief investment officer for Independent
Advisor Alliance.
MSCI's gauge of stocks across the globe .MIWD00000PUS rose
0.77% following broad gains in Asia and Europe, pushing it to
new records. The dollar-denominated Nikkei share average rose
above its 1989 peak to a record high. In morning trading on Wall Street, the Dow Jones Industrial
Average .DJI rose 79.85 points, or 0.26%, to 31,120.98, the
S&P 500 .SPX gained 16.56 points, or 0.44%, to 3,820.35, and
the Nasdaq Composite .IXIC added 84.38 points, or 0.65%, to
13,151.86.
"Investors are buying the end of an erratic Trump
administration and looking forward to something new, which is a
Biden presidency and the prospect of a significant spending
program," said Francois Savary, chief investment officer at
Swiss wealth manager Prime Partners.
Rising risk appetite weighed on bonds. Benchmark U.S.
10-year notes US10YT=RR last fell 8/32 in price to yield
1.0966%, from 1.071% late on Thursday.
The dollar just about held on to its gains, helped by the
rising yields. The dollar index =USD gained 0.1% against a
basket of currencies to 89.875 with the euro EUR= down 0.17%
to $1.2250.
Cryptocurrency bitcoin BTC=BTSP again hit a all-time high,
up nearly 5% on the day to $41,530, topping Thursday's high,
prompted by surging demand from institutional and retail
investors. Market watchers have said a pullback is likely
following its recent run-up. In commodity markets, oil traders continued to focus on
Saudi Arabia's pledge to deepen production cuts, pushing oil
prices near 11-month highs. U.S. crude CLc1 recently rose 1.65% to $51.67 per barrel
and Brent LCOc1 was at $55.30, up 1.69% on the day
Spot gold XAU= dropped 1.4% to $1,886.21 an
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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
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