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  • Equities turned in a mixed performance Tuesday in cautious trade amid vaccine rollouts and US stimulus hopes. The pound slumped for a second day running with post-Brexit trade talks on a knife-edge. And the yen dipped against the dollar after Japan's government approved more than $700 billion in fresh stimulus to fund projects from anti-coronavirus measures to green tech. Meanwhile the euro climbed on data showing German investor confidence rebounded in December, buoyed by hopes that vaccines -- expected to win approval for general use in the EU imminently -- could help end the coronavirus pandemic. In Europe, the "major indices are mixed as uncertainty is circulating with respect the UK-EU trade situation," said market analyst David Madden at CMC Markets UK. Both London and Frankfurt ended the day with the slightest of gains, while Paris dipped. Britain on Tuesday made a gesture of good faith by withdraw controversial elements of a legislative package concerning the future border in Ireland. Madden said "that should help create an environment for a potential deal to brokered." British Prime Minister Boris Johnson was preparing to travel to Brussels later this week for talks. With the two sides divided over fishing rights, rules for fair trade and an enforcement mechanism for regulatory standards, there is a growing fear a deal will not be done before the December 31 deadline. "Risk appetite is struggling to find direction amid Brexit headlines, rising Covid-19 case counts, and possible further US sanctions on China on the one hand and hopes for US fiscal stimulus and US vaccine approval," said Axi strategist Stephen Innes. "Investors are pinning their hopes on the ultimate holiday stocking stuffer, which is the capacity for (US) stimulus overwhelming a near-term downturn." Nurses on Tuesday cheered as an elderly British grandmother became the first person in the Western world to receive an approved vaccine against Covid-19, at the start of a marathon campaign health officials hope heralds a fight-back against the global pandemic. UK regulators last week became the first in the world to approve the Pfizer-BioNTech vaccine for general use, and the first jabs were administered across the country from early Tuesday. Analysts meanwhile said that the next leg-up for equities would be news that US lawmakers had finally reached an agreement on a new rescue package for the battered economy. Democrats have largely thrown their support behind a bipartisan proposal worth $908 billion while there is optimism Republicans will eventually come on board. After opening lower, the Dow pushed into positive territory in late morning trading, with the S&P 500 and tech-heavy Nasdaq Composite flat. "The mood on Wall Street is lacklustre," said Madden. "The health crisis is still a worry but that is being balanced out by the prospect of a stimulus package," he added. London - FTSE 100: UP less than 0.1 percent at 6,558.82 points (close) Frankfurt - DAX 30: UP less than 0.1 percent at 13,278.49 (close) Paris - CAC 40: DOWN 0.2 percent at 5,560.67 (close) EURO STOXX 50: DOWN 0.1 percent at 3,525.87 New York - Dow: UP percent at 29,997.95 Tokyo - Nikkei 225: DOWN 0.3 percent at 26,467.08 (close) Hong Kong - Hang Seng: DOWN 0.8 percent at 26,304.56 (close) Shanghai - Composite: DOWN 0.2 percent at 3,410.18 (close) Pound/dollar: DOWN at $1.3354 from $1.3374 at 2150 GMT Euro/pound: UP at 90.69 pence from 90.53 pence Euro/dollar: UP at $1.2112 from $1.2110 Dollar/yen: UP at 104.16 yen from 104.03 West Texas Intermediate: DOWN 0.4 percent at $45.58 per barrel Brent North Sea crude: UP less than 0.1 percent at $48.80 per barrel burs-rl/jj
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  • Equities wait for Brexit, stimulus developments
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