Global stock markets rise as coronavirus crisis eases
The euro forged another 2-month peak, and oil marched higher on hopes of recovering demand
WORLD stock markets rose on Tuesday as coronavirus lockdowns were relaxed and China-US tensions appeared to be easing, dealers said.
In Europe, Frankfurt was the star performer with a gain of over three percent in afternoon deals as German investors played catch-up after a long holiday weekend and eyed hopes of a new COVID-19 domestic stimulus package.
Lufthansa shares soared after the airline’s supervisory board approved a nine-billion-euro ( 10-billion) bailout from the German government.
Paris equities, also solidly higher, ignored the French government’s dire prediction that the economy will shrink 11 percent this year.
“Stock markets in Europe are showing decent gains as there is continued optimism in relation to the reopening of economies,” said analyst David Madden at trading firm CMC Markets UK. “Governments have been taking steps to loosen their lockdown restrictions, so there is a growing feeling that things are slowly going back to normal.”
The euro forged another two-month peak, and oil marched higher on hopes of recovering demand, while key producers including Saudi Arabia and Russia appear ready to decide on whether to continue their massive output cuts that have been crucial to supporting the virus-plagued market.
Traders are still tracking China-US tensions -- and anti-racism protests in several large American cities, and internationally.
“The absence of a serious trade rift between the US and China is helping sentiment,” said Madden. “Dealers on this side of the Atlantic have watched in horror at the scenes of rioting and looting in the US.”
On Wall Street, the Dow Jones index was higher at the opening bell.
‘Stock markets in Europe are showing decent gains as there is continued optimism in relation to the reopening of economies,’ said analyst David Madden at trading firm CMC Markets UK