U.S. Stock Futures Rise, Dollar Slips; Pound Jumps: Markets Wrap

(Bloomberg) — U.S. equity futures climbed along with Asian shares and the dollar weakened as investors took some comfort from further stimulus bill negotiations and the impending deployment of the first vaccine in the U.S. The pound climbed after Brexit talks were extended past a Sunday deadline, raising hopes of a deal.

Treasury yields ticked higher and S&P 500 futures gained about 0.5%, with the first deliveries of Pfizer Inc.-BioNTech SE vaccines in the U.S. due to arrive Monday morning. Meantime, a bipartisan group of lawmakers will unveil a $908 billion pandemic relief bill the same day, although there is “no guarantee” Congress will pass it, a key negotiator said.

Sterling was about 1% higher against the dollar as the U.K. and European Union said they will continue talking about a trade agreement. The euro and the yuan also strengthened.

Risk assets are beginning the week in a positive fashion, with global stocks looking to recover after their first week of losses in six. U.S. lawmakers remain deadlocked in talks over further stimulus and the coronavirus continues to spread. While both sides are closer than ever to agreeing on a price tag — coalescing around a $900 billion figure — there’s no sign they can get a deal anytime soon.

The vaccine “is giving markets the ability to look past the valley,” Andy Kapyrin, partner and director of research at Regentatlantic Capital LLC, said on Bloomberg TV. “Stocks pose a reasonable value proposition” relative to bonds, he said.

On the virus front, the head of the U.S. government’s vaccination drive said as much as 80% of the population could be given the shot by next summer, putting “herd immunity” within reach. Germany will enter a hard lockdown from Wednesday with non-essential stores shuttered, employers urged to close workplaces and school children encouraged to stay home.

Here are some key events coming up:

Tuesday brings China industrial production and retail sales data for November.The Federal Reserve meets Tuesday and Wednesday, with markets widely expecting fresh guidance on its continued asset purchases.Policy decisions from the Bank of England and central banks in Mexico, Switzerland and Indonesia are due Thursday. Japan and Russia announce decisions Friday.

These are the main moves in markets:

Stocks

S&P 500 futures rose 0.5% as of 9:01 a.m. in Tokyo. The gauge fell 0.1% on Friday.Japan’s Topix index advanced 0.2%.South Korea’s Kospi index gained 0.1%.Australia’s S&P/ASX 200 Index added 0.3%.

Currencies

The Bloomberg Dollar Spot Index fell 0.2%.The yen was at 103.95 per dollar, up 0.1%.The offshore yuan climbed 0.2% to 6.5289 per dollar.The pound rose 0.7% to $1.3321.The euro bought $1.2134, up 0.2%.

Bonds

The yield on 10-year Treasuries rose one basis point to 0.91%.Australia’s 10-year yield fell two basis points to 0.97%.

Commodities

West Texas Intermediate crude rose 0.2% to $46.68 a barrel.Gold fell 0.1% to $1,838.07 an ounce.

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