U.S. stocks surged forward along with European and Asian futures on Tuesday. The S&P 500 gained 1%, and the Nasdaq 100 jumped by 0.5%. Meanwhile, the Euro Stoxx 600 Index soared by 1.2%, and MSCI Asia Pacific Index climbed up by 0.9%.
According to new reports, U.S. President Donald Trump supports plans regarding another stimulus. Furthermore, data showed that American manufacturing is nearing expansion.
As a result, the S&P 500 skyrocketed to a two-week high, with investors continuing to focus on signs the U.S. economy is rebounding from the shutdown. However, after a wild overnight session that saw futures collapse after a White House adviser said the trade deal with China was over, investors remain on edge. Stocks rallied again on Tuesday after President Donald Trump contradicted that statement.
European shares soared during the last session, as well. Carmakers and banks gained most in the Stoxx Europe 600 index due to positive economic data in the euro area. Bayer AG surged forward by more than 7% after announcing that it is close to resolving the litigation over its Roundup weedkiller.
Investors are hopeful that trillions of dollars in stimulus by governments and central banks around the world will shield economies from new viral breakouts. PMIs for June are due Tuesday. They may show business activity in the world’s largest economy, continuing a recovery that started in May.
Even though euro-area PMI gauges fueled a risk-on mood earlier, they also highlighted some of the pressures that a long and slow recovery would impose on firms struggling with weak demand.
Experts warn about the possibility of new outbreaks
On Tuesday, Anthony Fauci, the U.S.’s top infectious-disease doctor, stated that coronavirus isn’t taking a summer break, considering its persistent spread in the U.S. A German state locked down a municipality as 1,553 workers tested positive at a single meat factory.
Investors are waiting for MSCI Inc. to announce its market classification review for 2020 later on today. The IMF also plans to release the new 2020 growth projections on Wednesday. Meanwhile, U.S. jobless claims, durable goods, and GDP data are due on Thursday this week.
