Britain’s approval of the Covid-19 vaccine made by pharmaceutical giant AstraZeneca and Oxford University helped improve investor sentiment, but European markets were dragged lower as lockdowns were expanded. ©University of Oxford/AFP/File John Cairns 

London (AFP) – US stocks pushed to new heights on Wednesday but equities in Europe retreated as tighter lockdowns dampened enthusiasm over another vaccine receiving its first approval.

Despite higher $2,000 stimulus checks hitting a snag in the Senate, investors appeared content that some money was being injected into US households and businesses under the legislation signed into law at the weekend.

The Dow was up 0.6 percent in late morning trading, with the S&P 500 and Nasdaq Composite also higher.

“US stocks are aiming for fresh record highs as stimulus payments arrive at American bank accounts and after the UK signed off on the Covid vaccine from AstraZeneca and University of Oxford,” said market analyst Edward Moya at OANDA.

The Astra jab — which will be rolled out in Britain from January 4 — can be stored, transported and handled at normal refrigerated conditions.

It is therefore cheaper and easier to administer than the rival Pfizer/BioNTech and Moderna vaccines which require freezing, and has sparked renewed hope of a return to normality in 2021.

While London stocks initially rose on the news, they turned lower in afternoon trading despite European Union and UK leaders signing their post-Brexit trade deal — with just one day to go until the UK finally leaves the bloc.

London’s FTSE 100 index ended the day 0.7 percent lower as tighter confinement measures were extended across England.

In the eurozone, Paris stocks shed 0.2 percent while Frankfurt slid 0.3 in a shortened trading session as Germany mulled extending its virus lockdown in the face of rising cases and deaths.

Frankfurt’s blue-chip DAX 30 index rose 3.6 percent over 2020, a roller coaster of a year that saw it hit new records at the beginning but then plunge 40 percent over the coronavirus pandemic only to rally on stimulus measures and vaccines to hit a new peak in December.

Asia was also mostly firmer with vaccine and economic recovery optimism helping investors look past an alarming surge in Covid-19 cases around the world.

In foreign exchange activity, the US dollar languished around 2.5-year lows versus the euro and pound, as investor appetite grew for riskier assets like equities.

Bitcoin, the world’s most popular cyber currency, extended this month’s blistering run to strike another record high at $28,572.10.

“Bitcoin mania is running wild as bearish bets against the dollar rise to the highest levels since 2011,” said OANDA’s Moya.

“Macro crypto traders and haters of fiat currencies remain blindly ultra-bullish and that could help Bitcoin test the $30,000 level before the year ends,” he added.

– Key figures around 1630 GMT –

New York – Dow: UP 0.6 percent at 30,519.95 points

London – FTSE 100: DOWN 0.7 percent at 6,555.82  (close)

Frankfurt – DAX 30:  DOWN 0.3 percent at 13,718.78 (close)

Paris – CAC 40: 0.2 percent at 5,599.41 (close)

EURO STOXX 50: DOWN 0.3 percent at 3,571.59

Tokyo – Nikkei 225: DOWN 0.5 percent at 27,444.17 (close)

Hong Kong – Hang Seng: UP 2.2 percent at 27,147.11 (close)

Shanghai – Composite: UP 1.1 percent at 3,414.45 (close)

Pound/dollar: UP at $1.3595 from $1.3502 at 2200 GMT

Euro/pound: DOWN at 90.37 pence from 90.71 pence

Euro/dollar: UP at $1.2284 from $1.2249

Dollar/yen: DOWN at 103.30 yen from 103.58 yen

West Texas Intermediate: DOWN less than 0.1 percent at $47.99 per barrel

Brent North Sea crude: UP 0.2 percent at $51.17

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Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.