US stocks resumed the ascent overnight amid hopes for more stimulus spending and economic recovery. The broader market was unaffected by mixed quarterly results from large banks as investors focused on positive drivers after the recent sell-off. The market was inspired by the news that leading Republicans in the White House are revising their stance on stimulus measures.
As for earrings, JPMorgan shares rose by 0.6% after reporting better-than-expected profits, Citigroup stocks fell 4.0% despite the results topping expectations, while Wells Fargo shed 4.6% after reporting a $2.4-billion loss. As a result, the Dow Jones Industrial Average jumped 2.1%, the S&P 500 gained 1.3%, and the tech-rich Nasdaq Composite Index advanced 0.9%.
In Asia, stocks were mixed-to-positive on Wednesday as worries about U.S.-China tensions weighed on investor sentiment. On the positive side, Moderna announced upbeat results of its third round of vaccine tests. Besides, US President Donald Trump said the COVID-19 vaccine will be out soon. Meanwhile, the Bank of Japan held its monetary policy unchanged and said it anticipated recovery in GDP later in the year. In Japan, the Nikkei 225 gained 1.59%, South Korea’s Kospi rose 0.84%, China’s Shanghai Composite was down 1.56% while Hong Kong’s Hang Seng index declined 0.28%.
European equities opened higher amid vaccine hopes. On the negative side, president Donald Trump signed a China sanctions bill targeting Beijing’s crackdown in Hong Kong. As for earnings, Burberry reported a 45% drop in sales for its first quarter. the company’s stocks fell by nearly 5% following the disappointing results. The Stoxx Europe 600 index rose over 1% during the session.
Elsewhere, the euro climbed to four-month highs around 1.1450 amid a recovery in risk demand along with a weaker dollar. A daily close above the 1.14 handle will act as a confirmation of the latest breakout and could bring more gains in the near term. On the other hand, traders may proceed to profit-taking ahead of the ECB monetary policy meeting due on Thursday.
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