Global equities rose yesterday as hopes for a quick economic recovery outweighed fresh virus worries and geopolitical tensions.
On Wall Street, the Dow was up around 150 points in the late New York morning with investors in “sunshine” mode, as Briefing.com analyst Patrick O’Hare put it, ignoring bad news and focusing on aggressive Federal Reserve stimulus.
In Europe, key stock markets were up to about a % higher at the closing bell after late profit-taking brought them off the day’s best levels.
Analysts at the Charles Schwab brokerage said markets were buoyed “by the three-headed bullish monster of recent upbeat economic data, the continued pouring in of global monetary and fiscal policy relief measures, and progress from the Health Care sector on finding an answer to the Covid-19 pandemic”.
Furthermore, fears of rising US-China tension were calmed when Bloomberg News reported Beijing planned to boost imports of farm goods including soybeans and corn from the US.
“US-China relations are not entering a period of calm by any means, but this latest breakthrough suggests both sides don’t want to mess with their respective fragile economic recoveries,” said Edward Moya at OANDA.
The euro rose against the dollar after European leaders met via video conference seeking agreement on the details of a 750bn euro stimulus package for their economies, and German Chancellor Angela Merkel said there were no disagreements about the principle of joint borrowing.
But the currency slipped back when Dutch Prime Minister Mark Rutte raised doubts that EU leaders would reach a deal at a summit in July.
The British pound struggled to bounce back from Thursday’s drop that came after the Bank of England unveiled more cash stimulus to prop up the virus-battered UK economy.
Oil prices rose again on optimism over the demand outlook as lockdowns eased.
“What’s become clear this week is that any second wave isn’t going to necessarily prompt governments to return to draconian lockdowns,” said Vandana Hari at Vanda Insights.
On the corporate front, the chief executive of scandal-hit Wirecard resigned yesterday after the German payments provider was hit with fresh fraud allegations that have left it struggling to survive.
In London, the FTSE 100 closed up 1.1% to 6,290.40 points; Frankfurt — DAX 30 ended up 0.4% to 12,330.76 points; Paris — CAC 40 closed up 0.4% to 4,979.45 points and EURO STOXX 50 closed up 0.6% to 3,269.10 points yesterday.
from Gulf Times https://ift.tt/2UYIPSX
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