Stimulus Hopes Boost Stocks to Record; Bitcoin Soars

Pedestrians wearing facial masks are reflected on an electric board showing stock prices outside a brokerage at a business district in Tokyo, Japan January 30, 2020. REUTERS/Kim Kyung-Hoon
Pedestrians wearing facial masks are reflected on an electric board showing stock prices outside a brokerage at a business district in Tokyo, Japan January 30, 2020. REUTERS/Kim Kyung-Hoon
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Stimulus Hopes Boost Stocks to Record; Bitcoin Soars

Pedestrians wearing facial masks are reflected on an electric board showing stock prices outside a brokerage at a business district in Tokyo, Japan January 30, 2020. REUTERS/Kim Kyung-Hoon
Pedestrians wearing facial masks are reflected on an electric board showing stock prices outside a brokerage at a business district in Tokyo, Japan January 30, 2020. REUTERS/Kim Kyung-Hoon

World stocks scaled new peaks and oil marched higher on Thursday as investors lapped up risky assets on hopes of a US fiscal stimulus and the Federal Reserve's pledge to keep pumping cash into markets.

From stocks to safe-haven gold and volatile bitcoin, financial assets were in festive mood. Bitcoin hit another all-time high after first shattering the $20,000 level on Wednesday.

US congressional negotiators were "closing in on" a $900 billion COVID-19 aid bill expected to include $600-$700 stimulus checks to individuals, lawmakers said on Wednesday.

Such checks issued during Spring led to money pouring into stock markets and bitcoin from punters, helping stocks recover quickly from the COVID-19 blow. A trader in London pointed to chances of a new retail-led boost to stock markets.

The general risk-on mood sent dollar to 2-1/2-year lows against major peers, while the MSCI world stock index reached a new high of 639.64. The index has climbed 16% since the end of October. Since then, multiple COVID-19 vaccine breakthroughs have been announced.

"While we expect stocks to benefit further from positive news on vaccine rollouts and US fiscal support, the same cannot be said for the US dollar," said Mark Haefele, Chief Investment Officer at UBS Global Wealth Management.

"We see further (dollar) weakness ahead."

European stocks and the euro rallied for the fourth straight session as investors built up positions in riskier assets, anticipating a sharp economic recovery in 2021 backed by wider vaccine rollouts and ultra-easy monetary policy.

The British pound hit May 2018 highs on hopes of a post-Brexit trade deal.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6% to a record high. Japan's Nikkei rose 0.2% - just shy of a 29-year peak.

Wall Street stock futures were pointing to more upside, with S&P 500 futures hitting a record high after the Nasdaq's record close on Wednesday.

SANTA RALLY

Brent crude oil futures rose 1.2% to $51.71 a barrel, their highest since early March - before over-production fears and virus worries pushed oil prices off a cliff.

"My suspicion is markets are inclined to extend this rally for two reasons," said Vishnu Varathan, head economist at Mizuho in Singapore, citing US monetary policy support and vaccine rollouts.

"If new infection numbers don't go crazy...I think there is some scope for a so-called Santa rally into the end of the year," he said.

US Federal Reserve Chairman Jerome Powell vowed on Wednesday to keep pouring cash in to markets until the US economic recovery is secure.

Bond traders were disappointed he did not extend the Fed's purchase program deeper down the yield curve, and US Treasuries sold off at longer tenors, but others took it as a signal the bank will have their back.

The Swiss National Bank kept its ultra-expansive monetary policy on hold, keeping the world's lowest interest rates and staying ready to launch currency interventions despite being labeled a currency manipulator by the United States.

The Swiss Franc was last at 0.8835.

Better-than-expected labor data in Australia pushed the Aussie as high as $0.7624, its strongest since mid-2018.

The Aussie is also riding high on surging prices for iron ore and a mood that has pushed currencies in Malaysia, Singapore, Thailand, Taiwan, Sweden, and Norway to milestone peaks.

The kiwi rose to its strongest since early 2018 after New Zealand's economic growth beat expectations.

US Treasuries steadied, with the yield on benchmark ten-year government bonds flat at 0.9246%.

Cryptocurrency bitcoin extended gains after breaking past $20,000 overnight. It rose 8% to $23,058. Investors are attracted by its momentum - it is up 200% this year - and its purported resistance to inflation because of its limited supply.

Gold rose 0.3% to $1,869 an ounce.



Saudi Business Confidence Index Remains Optimistic

A street in the Saudi capital, Riyadh (Reuters)
A street in the Saudi capital, Riyadh (Reuters)
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Saudi Business Confidence Index Remains Optimistic

A street in the Saudi capital, Riyadh (Reuters)
A street in the Saudi capital, Riyadh (Reuters)

Saudi Arabia’s Business Confidence Index remained in optimistic territory at 52.1 points in March, underscoring private sector resilience despite geopolitical challenges.

The index fell from 60.7 in February but stayed above the neutral 50 threshold, reflecting continued confidence in stable economic activity and sustained growth across key sectors, according to the General Authority for Statistics (GASTAT).

A statement released by GASTAT said that the BCI for the industrial sector recorded 50.8 points, maintaining an optimistic level despite a decline of 15.8 percent compared to February.

The BCI for the services sector recorded 52.0 points, maintaining an optimistic level despite a decline of 14.9 percent compared to February, it said.

Regarding the BCI in the construction sector, the data revealed that in March, it recorded an optimistic level at 53 points, confirming the continued positive confidence among establishments in the sector, the statement added.


Syria Nears Correspondent Bank Account Deal with Türkiye, Mulls Currency Swap

This picture shows stacks of Syrian lira banknotes at the Commercial Bank of Syria in Damascus, on November 10, 2022. (Photo by LOUAI BESHARA / AFP)
This picture shows stacks of Syrian lira banknotes at the Commercial Bank of Syria in Damascus, on November 10, 2022. (Photo by LOUAI BESHARA / AFP)
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Syria Nears Correspondent Bank Account Deal with Türkiye, Mulls Currency Swap

This picture shows stacks of Syrian lira banknotes at the Commercial Bank of Syria in Damascus, on November 10, 2022. (Photo by LOUAI BESHARA / AFP)
This picture shows stacks of Syrian lira banknotes at the Commercial Bank of Syria in Damascus, on November 10, 2022. (Photo by LOUAI BESHARA / AFP)

Syria ‌is in the final stages of establishing a correspondent bank account with neighboring Türkiye's central bank and will also discuss a potential currency swap aimed at boosting trade, the Syrian central bank chief said.

Türkiye has been the main backer of the Syrian government of President Ahmed al-Sharaa since the ousting of Bashar al-Assad in late 2024. Al-Sharaa has been seeking to rebuild state institutions and the ‌economy after ‌more than a decade of war, sanctions ‌and ⁠financial isolation, Reuters said.

Trade between ⁠the two countries has surged but businesses say the lack of a cross-border payments system was one of the biggest impediments to further growth and investment. A correspondent bank account would help to facilitate cross-border payments and trade finance transactions ⁠which traders say are currently cash only ‌and handled by traditional ‌money transfer offices.

In written responses to Reuters questions, Syria's ‌central bank Governor AbdulKader AlHussrieh said he expected Syrian-Turkish ‌cooperation to expand "into integrated payment systems, cross-border settlements, and more structured trade finance frameworks".

"Cooperation with Türkiye, particularly between the Central Bank of Syria and Turkish authorities, is accelerating ‌and becoming increasingly institutionalized," said AlHussrieh, who was on a two-day working visit to ⁠ Türkiye ⁠this week.

Turkish state lender Ziraat Bank and smaller private Aktif Bank were also expected to begin Syrian operations "in the near term", he said.

Türkiye 's exports to Syria jumped following Assad's ouster by 60% to $3.5 billion last year, official data show, while Syria's imports were at $235 million. The countries aim to almost triple trade volume to $10 billion over the medium term.

"This ambition will require a fully functioning financial system in Syria, supported by strong correspondent banking relationships," AlHussrieh said.


OPEC Chief Stresses Commitment to Support Market Stability

Al Ghais spoke on Thursday at the 16th High-Level Meeting of the Energy Dialogue between OPEC and the EU in Brussels
Al Ghais spoke on Thursday at the 16th High-Level Meeting of the Energy Dialogue between OPEC and the EU in Brussels
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OPEC Chief Stresses Commitment to Support Market Stability

Al Ghais spoke on Thursday at the 16th High-Level Meeting of the Energy Dialogue between OPEC and the EU in Brussels
Al Ghais spoke on Thursday at the 16th High-Level Meeting of the Energy Dialogue between OPEC and the EU in Brussels

OPEC Secretary General Haitham Al Ghais has reiterated the Organization of the Petroleum Exporting Countries’ commitment to support market stability and emphasized the need for long-term investment in all energies to meet expected future demand growth.

Al Ghais spoke on Thursday at the 16th High-Level Meeting of the Energy Dialogue between OPEC and the European Union (EU) at the European Commission Headquarters in Brussels.

The meeting was co-chaired by Al Ghais and European Commissioner for Energy and Housing Dan Jørgensen.

The dialogue was first established in 2005, making it OPEC’s longest-standing dialogue. Since then, the cooperation has included 16 high-level, five technical and numerous bilateral meetings in both Vienna and Brussels, ten joint studies, the co-hosting of numerous workshops and roundtables and the facilitation of valuable exchanges on energy market outlooks.

Al Ghais reflected on the productive collaboration between the two organizations over more than two decades, and emphasized the value of exchanging views on energy issues of common interest.

The importance of the dialogue is evident in a dynamically evolving global environment, which creates challenges for global energy markets and the global economy more broadly, Al Ghais said.

Moreover, he underscored the benefits of dialogue to help navigate market challenges, reiterating OPEC’s commitment to support market stability and emphasizing the need for long-term investment in all energies to meet expected future demand growth.

Discussions focused on the current oil and energy market outlook, including supply and demand dynamics, macroeconomic conditions, the evolving global energy mix and the need for balanced and realistic approaches to future energy pathways. The meeting also highlighted the need for all energies to help deliver energy security and energy availability, and all technologies to help achieve emissions reductions.

OPEC reiterated its commitment to maintaining open and constructive dialogue and to continue strengthening cooperation within the framework of the OPEC-EU Energy Dialogue.

It was agreed that the next High-Level Meeting of the OPEC-EU Energy Dialogue will take place in November 2026 in Vienna.