Stocks peak on vaccine, U.S. stimulus and Brexit deal hopes; dollar slumps

LONDON (Reuters) – World stocks rose to record highs on Wednesday while the safe-haven dollar reached its lowest in more than two and a half years on the prospect of effective coronavirus vaccines and more U.S. fiscal stimulus.

European stocks and the euro also got a boost after PMI economic data came in better than expected and the European Central Bank decided on Tuesday to let euro zone banks start paying dividends again if they have enough capital.

Markets will look to the U.S. Federal Reserve later to see whether it hints at an extension of its stimulus programme and it thinks the economy will suffer a double-dip recession or is on the cusp of a vaccine-inspired boom.

“We are not expecting a lot of fireworks from the Fed today – they have already engineered very easy monetary conditions and the tone of their messaging has been persistently dovish,” said Marija Vertimane, senior strategist at State Street Global Markets. “This is unlikely to change … in this meeting.” Reuters News

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