* Bitcoin eases off record high
* Tokyo’s Nikkei at 30-year high
* Copper hits 8-year high on recovery hopes
* US futures gain 0.5%
* World FX rates http://tmsnrt.rs/2egbfVh
By Huw Jones
LONDON, Feb 16 (Reuters) – Stocks in Europe flirted withone-year highs on Tuesday, buoyed by hopes that rollout of theCOVID-19 vaccine and a huge U.S. stimulus package will translateinto a durable economic recovery and draw a line under a year oflockdowns.
Oil prices jumped to a 13-month high as a deep freeze due toa severe snow storm in the United States not only boosted powerdemand but also threatened oil production in Texas.
Bitcoin was trading at $49,072.84 in Europe,after hitting a new record high $60 shy of $50,000 earlier inthe day.
The pan-European STOXX 600 was up 0.19%, afterhitting its highest on Monday since late February 2020.
“The big picture is that there is an awful lot of enthusiasmfor recovery when it comes to the vaccine programme,” saidMichael Hewson, Chief Market Analyst CMC Markets.
The prospects for economic recovery lit up commodities, withcopper at $8,384.50, after hitting its highest since May2012. The European mining index was at its highest levelsince July 2011.
Hospitality stocks could see more gains as restaurants,hotels and pubs reopen in coming weeks. They should do well onthe back of the “staycation” trade, Hewson said.
EU fourth-quarter GDP figures and Germany’s Zew economicsentiment data were due on Tuesday.
But Hewson said most investors were ignoring numbers on pasteconomic performance, opting to look ahead to recovery on theback of an easing of lockdown restrictions going into thesummer.
“Markets started the week in a risk-on mood, in light ofpositive news relating to vaccine rollout. Risky assetscontinued to rise, with stocks performing well in Europe,”UniCredit analysts said in a note.
The euro crept 0.2% higher to $1.2149.
On Wall Street, S&P500 futures were up 0.46%. U.S.10-year Treasury yields touched 1.25% for the first in almost ayear.
The U.S. dollar at 90.229 was mired at a three-weeklow as growing optimism about recovery sent investors intoriskier currencies, including the euro and British pound.
U.S. President Joe Biden is pushing ahead with his plan topump an extra $1.9 trillion in stimulus into the economy, in afurther boost to market sentiment.
NIKKEI RALLY
Market sentiment in Europe was helped by gains overnight inAsian shares, with Japan’s Nikkei blue chip index up1.28% at a 30-year high.
MSCI’s broadest index of Asia-Pacific shares outside Japangained 0.44%.
In Hong Kong, the Hang Seng Index rose 1.9% to hit a32-month high, while Australia’s S&P/ASX200 gained0.7%. Mainland Chinese markets will remain closed for theholidays until Thursday.
Ord Minnett advisor John Milroy said while share marketswere positive, investors were becoming wary of the future riskof inflation due to central bank and government stimulusprogrammes in place around the world.
“There is a clear sense with rates staying low for some timeyet and investor appetite for equities staying strong we willlikely see markets hold up for some time yet,” Milroy toldReuters.
The bullish view on the economy lifted bond yields, with the10-year U.S. Treasuries gaining to 1.23%, theirhighest since late March.
Investors are looking to the minutes from the U.S. FederalReserve’s January meeting, due to be published on Wednesday, forconfirmation of its commitment to maintain its dovish policystance over the near future. That in turn is set to keep a tabon bond yields.
Brent crude was flat at $63.28 a barrel, afterrising to its highest since January 2020 in the previoussession. U.S. West Texas Intermediate (WTI) crude futuresgained 60 cents, or 0.7%, to $59.89 a barrel.
(Additional reporting by Tomo Uetake in SydneyEditing by Shri Navaratnam, Richard Pullin and Nick Macfie)
