US and European futures are up this Wednesday after global equities hit a new record high driven by more positive developments in the covid-19 pandemic and the prospect of major stimulus implementation in the world’s largest economy.
Euro Stoxx 50 futures are up 0.5 per cent while S&P 500 futures advance 0.4 per cent.
President Joe Biden’s proposed plan to move ahead with $1.9 trillion of stimulus thus continues to excite investors, even as rising inflation expectations begin to fuel debate over whether price pressures could put global equities at risk at stretched valuations.
“It looks like the story is now starting and the ‘momentum’ is building behind it, and that story includes the reopening, vaccines, the downward trend in cases of the virus that we’ve seen, supported by the new stimulus and with the Fed still providing reassurance,” Mona Mahajan, investment strategist at Allianz Global Investors, told Bloomberg TV.
In the Asian session, Hong Kong’s Hang Seng rose 1.7 percent, Japan’s Topix appreciated 0.3 percent and South Korea’s Kospi advanced 0.9 percent
