US stock futures were slightly changed before the open. Dow (INDEPENDENT) futures decreased by about 0.1%. S&P (SPX) futures were marginally weaker and Nasdaq (COMPOSITE) futures increased by 0.3%.
In Europe, in Germany DAX (DAX)and FTSE 100 (UKX) in London recorded a small loss, while in France CAC 40 (CAC40) was flat. In Asia, in Hong Kong Seng Hanging Index (HSI) closed by 0.1% higher than that of South Korea Kospi (KOSPI) grew by 0.2% and China Composite from Shanghai (SHCOMP) gave up 1.2%.
Japanese Nikkei (N225) led the benefits in the region, growing about 2% at one point at its highest level since early 1991. The index closed 0.5% higher. Shares of major airline ANA jumped nearly 5% after Japan and China announced on Tuesday that they had agreed to resume business travel by the end of the month.
Promising development of coronavirus vaccines help support global stocks, according to Stephen Ines, Axis global market strategist.
“Global investors are looking forward to the news about vaccines,” Ince wrote in a note Wednesday. Optimism helped boost oil futures as the price of Brent crude, a global benchmark, rose above $ 48 a barrel as traders expected demand to rise in 2021 as the vaccine allowed economies to move faster. to alleviate the limitations of coronaviruses.
Investors were also relieved to see that a formal transition from US President Donald Trump to President-elect Biden was finally under way, Ins said.
The U.S. Department of Public Administration is launching a so-called determination process that allows Trump administration officials to coordinate with Biden’s team. Sources confirmed to CNN that former Federal Reserve Chair Etienne Yellen would be nominated for Biden as finance minister, and she is expected to push for more incentives to take office – another positive for the stock.
However, investors are balancing this with the ongoing pandemic. The United States and Europe are tackling a second wave of coronavirus infections, which have limited daily life in some areas that could remain in place for several months and further damage recovery. Elsewhere, Hong Kong chief executive Carrie Lam said the city was on the brink of another epidemic as cases rose in Brazil and Mexico.
Investors will look for signs of the US economic recovery on Wednesday, with initial unemployment claims and expectations of consumer confidence, personal income and the sale of new housing.