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(Alliance News) - Stock prices in London are seen opening higher at the start of the week, with the mood in global markets lifted by hopes for a new US stimulus package.
US President Joe Biden seized on feeble US employment data, published on Friday, to argue the world's largest economy needs his USD1.9 trillion pandemic relief package, which cleared a key Senate hurdle without support from the Republican opposition.
"I believe the American people are looking right now to their government for help," Biden said after a meeting with top Democratic lawmakers. "So I'm going to act. I'm going to act fast."
IG futures indicate the FTSE 100 index is to open 40.2 points higher at 6,529.53 on Monday. The blue-chip index closed down 0.2%, or 14.39 points at 6,489.33 on Friday.
"At the back end of last week, the Biden administration put in motion a plan to get the USD1.9 trillion stimulus package signed off without support from Republican lawmakers. President Biden has a history of fostering good relations with politicians from across the aisle as well as seeking consensus on issues but this time he is determined to put the American people first," CMC Markets analyst David Madden said.
"The stimulus move also helped US equities notch up a record close. Janet Yellen, the US treasury secretary, claimed the US economy could return to full employment next year if President Biden's USD1.9 trillion relief package is passed. The positive sentiment from the US at the end of last week helped Asian equity markets. European stock markets are on track for a positive start."
On Friday, the Dow Jones Industrial Average closed up 0.3%, the S&P 500 up 0.4%, and the Nasdaq Composite up 0.6%.
The Japanese Nikkei 225 index jumped 2.2% on Monday, closing above the 29,000 mark. In China, the Shanghai Composite was 0.9% higher in late trade, while the Hang Seng index in Hong Kong is up 0.3%.
"Chinese has released anti-monopoly news today, aimed squarely at China big-tech companies. Markets seem to have priced this in for now though, with mainland markets slightly higher and large Hong Kong-listed China technology companies outperforming there this morning," OANDA Asia Pacific Senior Market Analyst Jeffrey Halley said.
Tencent Holdings shares were 1.0% higher in Hong Kong.
In Sydney, the ASX 200 closed up 0.6%.
Sterling was trading at USD1.3726 on Monday morning, largely flat from USD1.3728 at the London equities close on Friday.
CMC's Madden added: "The UK continues to be one of the best countries in the world as far as the vaccination rollout is concerned, approximately 17% of the population have received their first jab of the vaccine. It is not all good news on the health front though, the AstraZeneca-Oxford vaccine is not effective against the South African strain of the coronavirus."
South Africa has temporarily suspended the AstraZeneca and Oxford University jab against a new variant found in the country, according to the health department and top local scientists.
The AstraZeneca-Oxford vaccine protects against the original Covid-19 strain, but its efficacy drops off substantially when it comes to the new variant called B.1.351 or 501.V2, raising serious concerns, said Shabir Madhi, the professor of vaccinology at the University of the Witwatersrand, citing a new local study involving 2,000 participants.
The euro stood at USD1.2033 on Monday morning London time, up from USD1.2025 at the European equities close on Friday. Against the yen, the dollar was trading at JPY105.51, improved from JPY105.45 at the same time Friday.
Brent oil was quoted at USD59.76 a barrel, up from USD59.62 a barrel at the London equities close Friday. Gold fetched USD1,815.23 an ounce, up from USD1,808.40.
A quiet economic calendar on Monday has German industrial production figures at 0700 GMT.
The UK corporate calendar on Monday has full-year results from property manager Inland Homes and trading statements from industrial and electronic products distributor Electrocomponents and consumer goods brand designer UP Global Sourcing Holdings.
Later in the week, the US earnings season picks up pace again, with social networking site Twitter reporting on Tuesday, soft drinks heavyweight Coca-Cola on Wednesday, and Walt Disney on Thursday.
By Eric Cunha; ericcunha@alliancenews.com;
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