Asian stocks were more or less subdued on Wednesday as U.S.-China tensions weighed heavily on the market. Some of them saw modest gains, while others remained steady. The MSCI Asia Pacific Index increased by 0.2%.
Traders are trying to avoid sharp moves, but so far they seem to be taking the news about possible sanctions over Beijing’s crackdown in Hong Kong in stride.
Meanwhile, European market rallied on Wednesday. The Stoxx 600 Index jumped toward its third daily increase, while Italy’s government bonds skyrocketed.
European stocks surged forward after the release of positive reports about the latest stimulus. According to the news, Europe’s package of grants and loans for up to 750 billion euros ($823 billion) is sufficient to overcome the region’s deepest recession.
The recent equity rally is an indication that traders are getting optimistic about the reopening of the economy as well as drug-treatment developments – noted Katerina Simonetti, the senior portfolio manager at UBS Private Wealth. Experts hope that this will eventually lead to normalization in the market. But they are still keeping an eye on a re-emergence of coronavirus cases.
What about the U.S futures?
U.S. stocks have been gaining for a third consecutive day. Investors’ rising optimism about the global economy boosted stocks. The S&P 500 Index jumped by 1.1% while the Stoxx Europe 600 Index gained 0.8%. Germany’s DAX Index also soared by 2.1%.
Those Stocks which suffered most from the coronavirus hit high for the second day in a row as traders expect a sharp rise in spending on non-essential goods and services. Contracts on the S&P 500 soared above 3,000. On the other hand, futures on the Nasdaq 100 Index lowered.
Global stocks currently reached levels not seen since early March as traders’ hopes that economies are beginning to recover after a deep downturn. However, investors were waiting for the Fed’s “Beige Book” survey, which was due on Wednesday. It could provide more clues on the inflexion point for the economy and near-term outlook for jobs.