* The three major US stock indices open at all-time highs
* Yields on US Treasuries are higher; dollar wobbles
* DAX hits all-time high
* Trump signs $ 2.3 trillion spending program
* Brexit relief and vaccine rollout also support sentiment
* Asset Performance 2020 tmsnrt.rs/2yaDPgn (Updates to US open, deadline changes to NEW YORK from MILAN, changes online)
NEW YORK, Dec.28 (Reuters) – The three major U.S. stock indices opened at record highs on Monday, and Treasury yields rose as stimulus measures and long-awaited Brexit trade deals fueled the investor risk appetite.
US stocks followed their European counterparts higher in a large rally, with small and mid-cap stocks outperforming.
President Donald Trump turned the tide on Sunday by signing a $ 2.3 trillion tax relief and spending package into law, averting a possible government shutdown and setting the stage for Democrats in Congress to demand payments $ 2,000 strongest direct to millions of Americans.
“It’s a positive tone for the US market and part of it is Trump’s signing of the stimulus package, which seemed uncertain but was ultimately accomplished,” said Tim Ghriskey, chief investment strategist at Inverness Counsel. At New York.
Britain struck a trade deal with the European Union on Thursday, days before leaving one of the world’s largest trading blocks, and urged businesses to prepare for disruptions resulting from the completion of Brexit.
“The Brexit deal is great news, and a great relief because it has dragged on for so long,” Ghriskey added. “And we have a deal that everyone accepts, it’s a good deal for everyone.”
The Dow Jones Industrial Average rose 292.14 points, or 0.97%, to 30,492.01, the S&P 500 gained 33.39 points, or 0.90%, to 3,736.45 and the Nasdaq Composite added 70.75 points, or 0.55%, at 12,875.49.
European equities experienced their fourth straight session of gains following the US stimulus deals and Brexit.
The ongoing deployment of coronavirus vaccines has also fueled sentiment, with Pfizer Inc announcing that it plans to complete distribution of 200 million doses in Europe by September.
UK markets were closed on Monday for the Boxing Day break.
The pan-European STOXX 600 index rose 0.73% and the gauge of MSCI stocks around the world gained 0.59%.
Emerging market equities lost 0.25%. The largest MSCI index for Asia-Pacific stocks outside of Japan closed 0.17% lower, while Japan’s Nikkei rose 0.74%.
Yields on US Treasuries soared and the yield curve steepened, fueled by a sense of risk following the entry into force of the stimulus bill.
The 10-year benchmarks last fell 7/32 to a yield of 0.9531%, down from 0.93% on Thursday night.
The price of the 30-year bond last fell 25/32 to a yield of 1.6999%, down from 1.666% on Thursday night.
The dollar slipped against a basket of global currencies as the euro gained strength as investors began to assess the risk of Brexit.
The dollar index was down 0.12%, the euro up 0.09% to $ 1.2215.
The Japanese Yen weakened 0.28% against the greenback to 103.80 per dollar, while the British pound last traded at $ 1.3454, down 0.69% on the day.
Crude prices have stabilized as hopes of a rebound in demand helped offset the prospect of an increase in OPEC + production.
US crude fell 0.21% to $ 48.13 a barrel and Brent was last at $ 51.35 a barrel, up 0.12% on the day.
Gold reduced its initial gains as the dollar recouped its losses amid the rally in stocks.
Spot gold added 0.6% to $ 1,887.81 an ounce.
Reporting by Stephen Culp; additional reporting by Danilo Masoni in Milan Editing by Paul Simao