Buyers are beginning off the brand new 12 months fixated on the identical situation that dominated markets for a lot of 2020: the coronavirus pandemic. Though cash managers acknowledge the pandemic is much from over, many are holding out hope that financial exercise will have the ability to choose up later this 12 months.

“There’s nonetheless actually unhealthy information on the virus, however the market is wanting via that due to the vaccines,” stated Fahad Kamal, chief funding officer at Kleinwort Hambros. “We’re definitely positively tilted, given the anticipated financial restoration, traditionally low rates of interest, a number of fiscal spending and financial coverage to come back: all of that positivity stays.”

Nonetheless, analysts warn that within the near-term, many firms nonetheless look susceptible to monetary pressures.

Coca-Cola,

which was downgraded by RBC Capital Markets to “sector carry out” from “outperform,” misplaced 3.5%. Analysts on the financial institution imagine the pandemic will proceed to restrict main public occasions and eating at eating places, probably hurting demand for Coca-Cola’s merchandise.

Boeing

shares fell 3.4% after Bernstein analysts reduce their score for the inventory to “underperform” from “market carry out,” citing the chance that the aerospace big might face substantial compensation claims from clients awaiting delayed orders.

Tesla bucked the pattern Monday. The electrical-car maker rose 4.9% after saying it delivered a file 499,550 automobiles final 12 months, simply shy of its half 1,000,000 goal.

Abroad, the pan-continental Stoxx Europe 600 rose 0.8%, paring earlier positive factors.

The U.Ok.’s FTSE 100 added 0.8%. The commerce deal struck on Christmas Eve between the U.Ok. and the European Union is probably going delivering a lift to British shares, stated Sebastian Mackay, a multiasset fund supervisor at Invesco.

“Lots of the tail dangers of a no deal [Brexit] have been eliminated now. This can lead folks to start out dipping their toes once more within the U.Ok. market,” he stated.

Buyers additionally stated they have been reassured by newly launched information on the well being of the manufacturing sector. Factories in Asia and Europe elevated their output as 2020 drew to an in depth, in response to surveys of buying managers that confirmed sturdy rises in exercise throughout December.

“We’re going via renewed lockdowns, which is curbing exercise to some extent, however what we’ve seen via the pandemic is that manufacturing exercise tends to carry up fairly properly,” Mr. Mackay stated.

Amongst European equities, British gaming firm

Entain

soared 28% after it confirmed a takeover bid from

MGM Resorts Worldwide.

The supply values the corporate at £8.09 billion, equal to $11.06 billion.

Most main inventory benchmarks within the Asia-Pacific area superior. South Korea’s Kospi Composite led positive factors, rising 2.5%.

China’s Shanghai Composite gained 0.9%, even after a non-public survey confirmed China’s manufacturing exercise moderated in December on account of weak demand for the nation’s exports.

Ben Luk,

senior multiasset strategist at State Road International Markets, stated the information pointed to continued fragility within the Chinese language economic system. However he stated that helped ease issues that China’s central financial institution would act prematurely to tighten financial coverage.

Japan’s Nikkei 225 dropped 0.7% by the tip of buying and selling after Prime Minister

Yoshihide Suga

stated he may declare a state of emergency in Tokyo and surrounding areas as new coronavirus infections proceed to rise.

Paul Sandhu,

head of multiasset quant options for the Asia-Pacific area at BNP Paribas Asset Administration, stated markets in Asia had largely picked up the place they left off in 2020, as buyers proceed to favor riskier property like equities in rising markets resembling China, South Korea and Taiwan. He stated he anticipated Asia to be one of the strong elements of world markets, due partly to its relative success in containing the coronavirus.

—Akane Otani contributed to this text

Write to Joanne Chiu at joanne.chiu@wsj.com and Anna Hirtenstein at anna.hirtenstein@wsj.com