Global Markets Rise, Dollar Weakens On US Stimulus Optimism

Wall Street saw gains on Tuesday as the U.S. is close to a bipartisan stimulus deal. The optimism is sweeping through Asia and European markets on Wednesday.

The Dow futures are up by 0.02%, and the S&P 500 futures are trading higher by 0.05% on the last check Wednesday. Brent crude futures are down by 0.26% at $50.63, while gold futures are up by 0.15% at $1,858. Ten-year Treasury yield is down by 1 bps to 0.911%.

Asia: Japan's Nikkei 225 gained 0.26% on Wednesday. The nation's trade balance surplus narrowed to ¥366.8 billion in November, missing the consensus of ¥529.8 billion. For December, Japan's manufacturing activity showed a surprising uptick to 49.7, much better than a 48.9 consensus. Services activity dipped to 47.2. Foreign investment in Japanese stocks and bonds data is due later today.

China's Shanghai Composite closed near-flat on Wednesday. Energy, consumer, and agriculture stocks gained, offset by losses in services and software stocks. Chipmaker Semiconductor Manufacturing Int'l SMICY slip as much as 7% in Shanghai after co-Chief Executive Officer Liang Mong Song resigned abruptly.

Hong Kong's Hang Seng Index advanced 0.97%, driven by gains in finance and industrial stocks.

Australia's S&P/ASX 200 closed higher by 0.72% after the continent's manufacturing activity expanded to 56, services activity expanded to 57.4, and new home sales grew 15.2% month-over-month. Unemployment data is due to release today.

India's Nifty 50 index is trading higher by 0.79% at press time after November's trade balance deficit widened to $9.87 billion, better than the consensus of a $9.96 billion deficit. M3 money supply data is due later today.

South Korea's KOSPI gained 0.54% on Wednesday after its unemployment rate ticked lower to 4.1%.

Europe: Euro Stoxx 50 is trading higher by 1% at publication time. The bloc has a busy economic calendar on Wednesday. Investors are watching the data from manufacturing and services PMI, construction output, trade balance, and wage growth.

London's FTSE 100 is trading higher by 1.06% after November's consumer price index (CPI) grew 0.3% YoY, missing consensus of 0.6%, and core CPI rising 1.1% YoY. November's PPI input rose 0.2% MoM core PPI output grew 0.9% YoY.

Germany's DAX has rallied 1.27% in early trade. December's manufacturing activity showed a surprise expansion at 58.6, and services activity expanded to 47.7.

France's CAC 40 is trading higher by 0.97% on Wednesday. The country's December manufacturing activity expanded to 51.1, and services activity expanded to 49.2, exceeding consensus on both counts. 

Spain's IBEX 35 is up by 0.52% at publication time.

Forex Trading: U.S. Dollar Index futures are down 0.33% at 90.112. The dollar has weakened 0.37% against the Euro to $1.2195, 0.36% against the Sterling Pound at $1.3510, and 0.29% against the Japanese Yen at ¥103.36.

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