Global Markets Buoyant as U.S. Stimulus Package Debate Looms

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Global stock markets gained for a second day on Tuesday, spurred by increased optimism about economic stimulus and global recovery, while retail investors retreated from GameStop and their newfound interest in silver.

Positive momentum from Asia carried through to Europe, with the panEuropean STOXX 600 edging up 0.9.

Shares in BP lost 3.8 after it plunged to a 5.7 billion loss last year, its first in a decade.

MSCIs world equity index, which tracks shares in 49 countries, was 0.4 firmer after posting its strongest day in three months on Monday.

MSCIs gauge of Asia Pacific stocks outside Japan rose 1.5, with Chinas benchmark CSI300 Index climbing 1.5, helped by easing concerns about tight liquidity and falling cases of new coronavirus infections. Japans Nikkei 225 added 1.

Emini futures for the SP 500 index added 0.8.

Markets were buoyant ahead of negotiations Tuesday between U.S. President Joe Biden and Republican senators on a new COVID support bill. The GOPs 618bn stimulus plan released early Monday was about a third the size of the Presidents proposal. Top Democrats later on Monday filed a joint 1.9 trillion budget measure in a step toward bypassing Republicans.

If you have the ability to have stimulus compromise its going to be very supportive for financial assets in the medium term as it means you will have the ability to have an economic recovery, said Francois Savary, chief investment officer at Swiss wealth manager Prime Partners.

The 1.9 trillion was set…

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