Some stocks rallied during Thursday’s session in Europe. Deutsche Lufthansa AG hit high, as its biggest shareholder backed a government rescue package. Core European bonds gained as well.
On the other hand, shares in German fintech Wirecard AG collapsed after it filed for insolvency. In Asia, stocks also plunged to their lowest in almost two weeks.
There is also a new surge in coronavirus infections. Concerns over lockdowns being reimposed and economies reopening more slowly due to renewed restrictions have hurt the optimistic sentiment. Health leaders already called on the U.K. to prepare for a possible second wave.
The market is nervous over the prospect of a significant increase in Covid-19, and maybe seeing places that were reopening up have to close up – noted Margie Patel, the portfolio manager at Wells Fargo Asset Management. According to her, it’s only inevitable that markets should get at least a little step back after they had a great run from the end of March.
What about U.S. futures?
U.S. stocks skyrocketed, gaining their most in more than a week. The S&P 500 hit high in the last hour of trading after fluctuating for most of the session. It has jumped up by 1.1% so far.
One of the highest increases in U.S. cases forced Texas and Florida to stop the next phases of the opening of their economies for now. Despite that, the S&P 500 index maintains a monthly gain. At the same time, banks soared by 2.7%. Regulators eased rules, which will free up capital.
Despite the recent rally, investors struggled to make decisions with the mixed batch of economic data. Traders weighed the prospects for an additional stimulus against the rise in U.S. coronavirus cases. Meanwhile, initial jobless claims have surpassed estimates at nearly 1.5 million.
The stock market is trying to digest what the timeline is, while also measuring the monetary stimulus and the future fiscal stimulus – stated Chad Morganlander, the senior money manager at Washington Crossing Advisors. He hopes that the monetary backdrop and fiscal backdrop will support the market even though there are many unknowns.
- Trading Instrument