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  • Equities extend gains as stimulus bets roll in (en)
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  • Global stock markets mostly rose Friday at the end of a strong week for equities, with Frankfurt and Wall Street continuing a record-breaking run as investors set their sights on a huge US stimulus package.

    The dollar traded mixed as data showed the US economy shed 140,000 jobs in December -- the first drop since April -- in a sign the recovery from the pandemic's damage has stalled.

    "Today's nonfarm payrolls shouldn't make too much difference to sentiment as investors are only really focussed on the path forward with vaccines and stimulus," noted Neil Wilson, chief analyst at Markets.com.

    But the numbers "nevertheless took the wind out of the market's sails," said Connor Campbell at Spreadex.

    The Dow opened higher from Thursday's record close, but by late morning it had slipped into the red. The S&P 500 and Nasdaq Composite continued to push higher from record closes on Thursday, however.

    US stocks have pushed higher this week as Joe Biden's presidential victory was certified and the Democrats won control of Congress in runoff elections. The Nasdaq has gained nearly 2.0 percent, with the S&P 500 adding 1.4 percent and the Dow 1.1 percent.

    Oil prices reached 10-month highs, continuing to benefit from news earlier in the week that Saudi Arabia plans to trim its crude output.

    Bitcoin hit a fresh record-high at $41,941.57, less than a month after breaking $20,000 for the first time.

    The prospect of another massive splurge in the US economy helped divert attention from soaring Covid-19 infection and death rates that have forced governments to once again lock down as they try to quickly roll out vaccinations.

    After Wednesday's extraordinary scenes in Washington that saw a pro-Donald Trump mob storm the Capitol, the president said he would allow for a smooth transition of power to Joe Biden and later called for "healing and reconciliation".

    While the violence shocked the world, investors brushed it off and analysts said Trump's comments would provide a little more reassurance.

    Traders are now looking forward to hearing what Democrats propose to do with their new powers, with expectations they will try to revive their titanic spending plans that were cast aside last year to push through a second stimulus with Republicans just before Christmas.

    Among the first pieces of legislation could be a drive to increase the cash handout included in that rescue package from $600 to $2,000.

    Observers also said earlier worries on trading floors that Democrats would try to hike taxes and pursue tighter regulations would likely disappear as lawmakers focus on eliminating the virus and reviving the economy.

    And most agree that the prospects for 2021 are good, especially with the Federal Reserve pledging to keep interest rates at record lows for the foreseeable future and continue to provide vast sums as financial backup to businesses.

    In Europe, Frankfurt's DAX 30 index had opened at a record-high above 14,100 points, with traders putting their faith in vaccine rollouts to get economies up and running once more.

    It trimmed its gains, but still ended the day with another record close.

    - Key figures around 1630 GMT -

    London - FTSE 100: UP 0.2 percent at 6,873.26 points (close)

    Frankfurt - DAX 30: UP 0.6 percent at 14,049.53 (close)

    Paris - CAC 40: UP 0.7 percent at 5,706.88 (close)

    EURO STOXX 50: UP 0.3 percent at 3,634.23

    New York - Dow: DOWN 0.3 percent at 30,960.10

    Tokyo - Nikkei 225: UP 2.4 percent at 28,139.03 (close)

    Hong Kong - Hang Seng: UP 1.2 percent at 27,878.22 (close)

    Shanghai - Composite: DOWN 0.2 percent at 3,570.11 (close)

    Euro/dollar: DOWN at $1.2244 from $1.2268 at 2330 GMT

    Dollar/yen: UP at 103.87 yen from 103.81 yen

    Pound/dollar: UP at $1.3575 from $1.3563

    Euro/pound: DOWN at 90.23 pence from 90.44 pence

    West Texas Intermediate: UP 1.8 percent at $51.75 per barrel

    Brent North Sea crude: UP 2.1 percent at $55.54 per barrel

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    (en)
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  • London
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  • Update
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  • urn:newsml:afp.com:20210108T171324Z:TX-PAR-SBZ36:1
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  • en
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  • Markets-world
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  • Markets
  • world
  • Joe Biden
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