Vaccine, Brexit hopes buoy global stocks; US retreats

New York (AFP) – European stocks marched higher Monday, buoyed by Covid-19 vaccine optimism and hopes of a last-minute Brexit deal, but fears of new US shutdowns undermined Wall Street’s early gains.

Even as the first Americans began to receive the vaccine, after last week’s emergency authorization, the bellwether Dow Jones Industrial Average ended with a loss of 0.6 percent after hitting a 52-week high during the trading session, and the broad-based S&P 500 fell 0.4 percent.

US regulators gave the go-ahead for the use of the Pfizer-BioNTech vaccine on Friday and officials said 20 million Americans could receive a first of two required injections by the end of the year and 100 million by March.

But the US coronavirus death toll hit 300,000 on Monday and analysts at Schwab cautioned that “we’re not yet out of the coronavirus tunnel.”

As infections continue to mount, New York City Mayor Bill De Blasio warned the city could experience another “full shutdown” soon.

US regulators gave the go-ahead for the use of the Pfizer-BioNTech vaccine on Friday and officials said 20 million Americans could receive a first of two required injections by the end of the year and 100 million by March.

There was renewed, if cautious, hope about a new US economic relief package, as a bipartisan group of lawmakers in Washington was set to formally release a $908 billion compromise package.

The plan includes new unemployment aid, help for state and local governments and limited liability protections for businesses.

But there have been few signs in recent days that the latest offer would be enough to win support in the Republican-controlled Senate or the Democrat-controlled house.

– ‘Narrow path’ for Brexit –

In Europe, glimmers of hope for a last-minute Brexit deal kept markets looking up through the close of trading, with Germany’s DAX 30 adding 1.0 percent, the French CAC 40 0.5 percent and the Euro Stoxx 50 0.7 percent.

An EU diplomat said that the Brussels’ chief negotiator Michel Barnier had spoken of a “narrow path” to a trade deal to govern relations once a standstill transition period expires on December 31.

British Prime Minister Boris Johnson and EU chief Ursula von der Leyen had said after a crisis call that they would “go the extra mile” to find common ground in long-running talks between Brussels and London.

They agreed to extend the negotiations beyond the Sunday deadline, with sticking points on issues including fishing rights and fair trade regulations.

The news gave the pound a boost against the dollar and euro, although Johnson warned a deal was far from sure with less than three weeks until Britain leaves the single market on December 31.

“I’m afraid we’re still very far apart on some key things, but where there’s life there’s hope,” he said.

The talks between the EU and Britain indicated there was still hope of a last-minute deal, OANDA analyst Craig Erlam said.

“It does seem like some progress is being made and with neither side willing to be the ones to call off the talks; a minute-to-midnight compromise looks likely,” Erlam said.

With the pound stronger, London’s multinational-heavy FTSE 100 index was weighed down, shedding 0.1 percent.

– Key figures around 2200 GMT –

New York – Dow: DOWN 0.6 percent to 29,861.55 (close)

New York – S&P 500: DOWN 0.4 percent at 3,647.49 (close)

New York – Nasdaq: UP 0.5 percent at 12,440.04 (close)

London – FTSE 100: DOWN 0.1 percent at 6539.98 points

Frankfurt – DAX 30: UP 1.0 percent at 13,242.39

Paris – CAC 40: UP 0.5 percent at 5,536.84

EURO STOXX 50: UP 0.7 percent at 3,509.06

Tokyo – Nikkei 225: UP 0.3 percent at 26,732.44 (close)

Hong Kong – Hang Seng: DOWN 0.4 percent at 26,389.52 (close)

Shanghai – Composite: UP 0.7 percent at 3,369.12 (close)

Pound/dollar: UP at $1.3325 from $1.3224 at 2200 GMT

Euro/pound: DOWN at 91.12 pence from 91.59 pence

Euro/dollar: UP at $1.2146 from $1.2112

Dollar/yen: DOWN at 104.00 yen from 104.24 yen

West Texas Intermediate: UP 1.01 percent at $47.04 per barrel

Brent North Sea crude: UP 0.7 percent at $50.33

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