The last few months were very hard for the stock markets. After the coronavirus spread worldwide and countries went into lockdown, most businesses were suspended, and the global economy collapsed on record lows.
However, it seems that stocks are recovering at last. New data suggested that efforts to contain the pandemic may be starting to pay off in Italy, Spain, and New York. As a result, global stocks skyrocketed on Monday, along with U.S. futures.
Nasdaq rallied by 4.2%, while the Dow Jones and S&P 500 futures each soared by 3.8%. American stocks declined on Friday after a dire report showed that the U.S. economy lost over 700,000 jobs in March. However, Wall Street is recovering fast.
What about the other futures?
European stocks skyrocketed in early trading. Germany’s DAX surged by 4.2%, while France’s CAC 40 rose by 3.5%. The FTSE 100 also gained more than 3%.
Meanwhile, Australia’s S&P/ASX 200 and Japan’s Nikkei 225 rallied by more than 4%. Hong Kong’s Hang Seng Index also climbed up by 2.2%. On the other hand, markets were closed for a public holiday in mainland China.
The stock markets hit high after Italy recorded its lowest death rate within 24 hours in two weeks, and Spain reported only 674 deaths from the coronavirus on Sunday, the lowest daily rise since early March.
According to Andrew Cuomo, the number of deaths in New York state also begun dropping. However, the governor warned that it’s too early to tell whether this means the state has passed its peak.
Jeffrey Halley, the senior market analyst at Oanda, noted that the investors are reading the data as a sign that lockdown measures are starting to prove effective. But he also cautioned that the positive sentiment could be fleeting. Especially, as the last week’s U.S. jobs numbers show that the virus is wreaking “almost unimaginable havoc” on the economy worldwide.
- Check-out Myforexnews’ Comprehensive Review on TradersHome
