NEW YORK: Stocks rose on Wednesday as investors waved away a threat by US President Donald Trump not to sign a pandemic relief bill, while the British pound soared on rising expectations of a Brexit trade deal.

In a video posted on Twitter, Trump said a stimulus bill, agreed upon after months of wrangling in Congress, was “a disgrace” and that he wanted to increase “ridiculously low” $600 payments for individuals to $2,000.

The benchmark S&P 500 US stock index nonetheless rose in morning trade as cyclical sectors such as energy and financials expected to benefit most from an economic recovery led in percentage gains. S&P 500 futures had fallen overnight in response to Trump’s threat but later recovered.

Investors said they still believed a fiscal package would come soon, whether under Trump or President-elect Joe Biden.

“Stocks, rightly so, are looking through what is political theater from Trump,” said Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions.

In Europe, the STOXX index gained 0.97pc after reports that Britain and the European Union were close to a trade agreement after difficult, protracted negotiations, with the end of year deadline looming. A senior European diplomat told Reuters on Wednesday that a deal was imminent.

MSCI’s gauge of global stocks in turn rose 0.60pc.

On Wall Street, the Dow Jones Industrial Average rose 191.4 points, or 0.64pc, to 30,206.91, the S&P 500 gained 17.37 points, or 0.47pc, to 3,704.63 and the Nasdaq Composite added 5.64 points, or 0.04pc, to 12,813.55.

The Brexit trade deal news also boosted sterling, which gained 1.12pc against the dollar to $1.3527.

In oil markets, the weakening in the dollar supported prices, helping them overcome an unanticipated rise in US crude oil inventories. Brent and US crude both rose around 2pc.

The weaker dollar also helped to boost gold, which added 0.7pc to $1,871.91 an ounce.

Published in Dawn, December 24th, 2020