US stocks struck fresh record highs Wednesday as trading got underway amid stimulus hopes, while oil prices hit 13-month highs.
Dealers remain upbeat about the chances of US President Joe Biden pushing through his $1.9 trillion economic rescue package despite warnings that the move — along with an expected economic recovery — would fan inflation.
As trading got underway on Wall Street, the Dow Jones Industrial Average, the broader S&P 500 and the tech-heavy Nasdaq Composite all struck fresh records.
"The positive disposition is a reflection of the ongoing bullish bias that has permeated the stock market," said Patrick J. O'Hare at Briefing.com.
He noted that so far concerns about a correction in stock prices has been outweighed by "a fear of missing out on further gains".
Oil prices struck 13-month peaks as dealers bet on rebounding demand, although the main US contract, WTI, later fell back.
Bitcoin dipped to $45,402 after setting a record close to $50,000 on Tuesday. The dollar was mixed against other major currencies.
Meanwhile, Europe's major equity markets steadied on Wednesday.
Falling coronavirus infection rates, expanding vaccination programmes and the prospect of a huge US spending splurge provided only limited support as traders paused following strong rises last week.
"European markets appear to be set for another day of contemplation, with the gains of last week giving way to a period of consolidation," said Joshua Mahony, senior market analyst at online trading group IG.
"Despite notable market drivers in the form of the US stimulus plans and ongoing coronavirus vaccination programme, the gains seen last week appear to have captured much of that initial improvement in sentiment.
"Instead, we appear to be in a holding pattern as markets await a breakthrough in (US) stimulus talks."
Asian stock markets closed higher with eyes firmly on the longer-term outlook for the global economy, as lockdowns are eased and life slowly improves.
Worries remain, however, that markets may have gone a little too far, which analysts said was capping any surge for now.
Declines in new coronavirus cases, deaths and hospitalisations in leading economies including the United States, Britain and Europe are fanning expectations they can begin opening up soon despite the emergence of new strains.
Hong Kong led Asia's rally, adding 1.9 per cent thanks to a surge in Tencent and NetEase following news Chinese authorities had given the green light to their most eagerly awaited video games.
Shanghai also rose by more than one per cent on Chinese data that indicated the economy was in recovery mode.
Gains in Tokyo were capped by news the Japanese government will keep Covid containment measures in place, however.
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