* Bitcoin lowers record high
* Tokyo Nikkei up 30 years
* Copper reaches the highest recovery expectation in 8 years
* US futures gain 0.5%
* World exchange rates tmsnrt.rs/2egbfVh
LONDON, February 16 (Reuters) – Stocks in Europe flirted with a year-high on Tuesday, driven by hopes that the launch of the COVID-19 vaccine and a huge US stimulus package will translate into an economic recovery. durable and will stop year of blockages.
Oil prices jumped to a 13-month peak due to a deep freeze due to a strong snowstorm in the United States not only boosted energy demand, but also threatened oil production in Texas.
Bitcoin was trading at $ 49,072.84 in Europe, after breaking a new record of $ 60 before $ 50,000 earlier in the day.
The pan-European STOXX 600 was up 0.19%, after reaching its highest level on Monday since the end of February 2020.
“The big picture is that there is great enthusiasm for recovery when it comes to the vaccine program,” said Michael Hewson, chief market analyst at CMC Markets.
The prospects for economic recovery illuminated commodities, with copper at $ 8,384.50, after reaching its highest level since May 2012. The European mining index was at its highest level since July 2011.
Hospitality stocks could see further gains from the reopening of restaurants, hotels and pubs in the coming weeks. They should do well with the staycation trade, said Hewson.
EU fourth-quarter GDP data and Germany’s Zew economic sentiment data were released on Tuesday.
But Hewson said most investors are ignoring the figures on past economic performance, opting to look at the recovery based on loosening summer blocking restrictions.
“The markets started the week at risk, in light of the positive news related to the launch of the vaccine. Risk assets continued to rise, with stocks performing well in Europe, ”UniCredit analysts said in a note.
The euro rose 0.2% to $ 1.2149.
On Wall Street, S & P500 futures were up 0.46%. American 10-year Treasury yields reached 1.25% for the first time in almost a year.
The US dollar at 90.229 was mired in a three-week low, with growing optimism about the recovery sending investors into riskier currencies, including the euro and the pound sterling.
US President Joe Biden is pursuing his plan to inject $ 1.9 trillion in extra stimuli into the economy, in an additional boost to market sentiment.
NIKKEI RALLY
Market sentiment in Europe was helped by overnight gains in Asian stocks, with Japan’s Nikkei blue chip index rising 1.28% in 30 years.
The broader MSCI index for Asia Pacific stocks outside Japan gained 0.44%.
In Hong Kong, the Hang Seng Index rose 1.9% to reach its highest value in 32 months, while Australia’s S & P / ASX200 rose 0.7%. Mainland China markets will remain closed on the holiday until Thursday.
Ord Minnett adviser John Milroy said that while equity markets were positive, investors were becoming cautious about the future risk of inflation due to central bank and government stimulus programs around the world.
“There is a clear feeling that rates will remain low for some time and investors’ appetite for shares will remain strong, we are likely to see the markets continue for some time,” Milroy told Reuters.
The optimistic view of the economy raised bond yields, with 10-year US Treasury bonds rising to 1.23%, the highest value since the end of March.
Investors await the minutes of the January meeting of the US Federal Reserve, due to be published on Wednesday, to confirm their commitment to maintaining their dovish political stance in the near future. This, in turn, is set to control bond yields.
Brent crude was stable at $ 63.28 a barrel, after rising to the highest level since January 2020 in the previous session. US West Texas Intermediate (WTI) crude futures gained 60 cents, or 0.7%, to $ 59.89 a barrel.
Additional reporting by Tomo Uetake in Sydney Editing by Shri Navaratnam, Richard Pullin and Nick Macfie