U.S. stocks continue climbing up for a third day due to investors’ rising optimism about the global economy rebounding. The futures rallied in Europe and Asia as well.
The S&P 500 Index gained 1.1% while the Stoxx Europe 600 Index rose by 0.8%, and Germany’s DAX Index gained 2.1%. Meanwhile, the MSCI Asia Pacific Index increased by 0.2%.
Contracts on the S&P 500 soared above 3,000. Those Stocks which suffered most from the coronavirus, from Carnival Corp. to United Airlines, skyrocketed for the second day in a row as investors expect a sharp rise in spending on non-essential goods and services. On the other hand, futures on the Nasdaq 100 Index declined.
In Europe, the Stoxx 600 Index surged toward its third daily increase, while Italy’s government bonds hit high. According to reports, Europe’s package of grants and loans for up to 750 billion euros ($823 billion) is sufficient to overcome the region’s deepest recession. This news boosted European stocks.
How did Asian futures fare?
Asian stocks fluctuated on Wednesday. U.S.-China tensions weigh heavily on Asian stocks. While some of them are still rising, others have remained steady so far. Still, Investors are trying to take the news about possible sanctions over Beijing’s crackdown in Hong Kong in stride.
The Fed’s “Beige Book” survey will be released later today. It may provide clues on the inflexion point for the economy and near-term outlook for jobs. Presently global stocks reached levels not seen since early March due to traders’ hopes that economies are beginning to recover after a deep downturn.
Katerina Simonetti, the senior portfolio manager at UBS Private Wealth, noted that the recent equity rally is an indication that traders are getting optimistic about the reopening of the economy as well as drug-treatment developments. Analysts hope that this will eventually lead to normalization in the market. However, they are still keeping an eye on the re-emergence of coronavirus cases.