Asian stocks rallied on Wednesday. Chinese futures skyrocketed, as the country declared that it didn’t have any new deaths for the first time since the pandemic started. The MSCI Asia Pacific Index soared by more than 2% after gaining nearly 3% a day earlier. Chinese policymakers launched further stimulus, causing the yuan to strengthen.
New York’s rate of new coronavirus infections also slowed for a third straight day. Investors hope that the pandemic may finally be approaching a peak in the state where it has caused the most damage. However, Chris Gaffney, president of world markets at TIAA, stated that the stocks would probably stay very volatile, and this roller coaster continues. He expects to see futures bottom out again.
Meanwhile, Oil fell to the lowest level since the start of the month. Traders argued whether the world’s biggest producers would be able to strike a deal that cuts enough output to offset a colossal demand loss from the coronavirus outbreak, causing the drop in the oil price.
Stock buyers got a little nervous when Oil rolled over – noted Matt Maley, the equity strategist at Miller Tabak & Co. According to him, it doesn’t take much for the buyers to pull in their horns with the volatility being so wild lately.
How did the U.S. and European stocks fare?
U.S. futures fell after volatile trading on Wednesday as investors debated whether the spread of the coronavirus may be slowing in U.S. and Europe.
The stocks rallied on Monday due to the hopes of the pandemic retreating. However, the S&P 500 Index declined on Wednesday by 0.2% after surging as much as 3.5% over the week. The benchmark briefly climbed by 20% from its March 23 low, entering a bull market. But its advance didn’t last long.
The European stocks, on the other hand, rallied. The Stoxx Europe 600 Index soared after the rate of new infections slowed in France, as well as in Italy, the original epicenter of the continent’s outbreak.