Global markets gain on recovery hopes
Global stock markets gained for a second day on Tuesday, spurred by increased optimism about economic stimulus and global recovery, while retail investors retreated from GameStop and their new-found interest in silver.
Positive momentum from Asia carried through to Europe, with the pan-European STOXX 600 edging up 0.9%. European shares rose as investors were hopeful of a faster economic recovery, while technology shares led the advance after French IT consulting group Atos ended talks of a potential takeover of U.S. rival DXC Technology. Shares in BP lost 3.8% after it plunged to a $5.7 billion loss last year, its first in a decade.
MSCI’s world equity index, which tracks shares in 49 countries, was 0.4% firmer after posting its strongest day in three months on Monday. MSCI’s gauge of Asia Pacific stocks outside Japan rose 1.5%, with China’s benchmark CSI300 Index climbing 1.5%, helped by easing concerns about tight liquidity and falling cases of new coronavirus infections. Japan’s Nikkei 225 added 1%. E-mini futures for the S&P 500 index added 0.8%.
Markets were buoyant ahead of negotiations Tuesday between U.S. President Joe Biden and Republican senators on a new COVID support bill. The GOP’s $618bn stimulus plan released early Monday was about a third the size of the President’s proposal. Top Democrats later on Monday filed a joint $1.9 trillion budget measure in a step toward bypassing Republicans.
The dollar hovered near a seven-week high, benefiting from a euro selloff overnight after coronavirus lockdowns choked consumer spending in Germany, and on short-covering in over-crowded dollar-selling positions.
Spot silver prices slipped 4.8% to $27.59 per ounce, as investors locked in profits after the precious metal touched a near eight-year peak in the previous session driven by retail investors. Spot gold fell 0.6% Tuesday to $1,847.51 per ounce. Brent crude was up 1.1% at $56.95 a barrel. U.S. crude gained 1.2% to $54.22 as falling inventories and rising fuel demand due to a massive snow storm in the Northeast United States propped up prices.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.