Home Finance Stock futures are climbing again today as traders bet on strength of...

Stock futures are climbing again today as traders bet on strength of economic recovery

U.S. stocks look poised to extend last week’s rally as investors bet on the strength of the economic recovery, despite rising virus infection rates.

The dollar weakened, while gold neared a seven-year high. Gains across retail and health-care shares helped the Stoxx Europe 600 Index erase an early retreat. Hong Kong stocks slumped after China moved to tighten oversight of the city. Crude oil hovered below US$40 a barrel in New York.

Even as virus cases rise in Germany and U.S. states of Florida, California and Texas, there’s growing speculation that politicians will be unwilling to put cities back on lockdown because of the economic toll. At the same time, markets have been supported by historic stimulus programs by central banks around the world, with policymakers vowing to get growth back on track.

In the U.K., Prime Minister Boris Johnson is preparing to relax social distancing rules in a major boost to the U.K.’s hospitality industry, as the government seeks to re-open more sectors of the economy that have been shut during the lockdown.

“The market doesn’t believe that we will see such draconian lockdowns even if there is a resurgence of the virus. The politics have moved on,” said James Athey, a money manager at Aberdeen Standard Investments. “Rightly or wrongly, there’s also a pretty widespread feeling that riskier assets won’t go down too far, because the Federal Reserve won’t let them.”

In Turkey, the benchmark equities index erased its 2020 losses, lifted in a rally driven mostly by a wave of buying from local investors.

These are the main moves in markets:

Stocks

  • Futures on the S&P 500 Index climbed 1.1 per cent as of 10:17 a.m. New York time.
  • The Stoxx Europe 600 Index gained 0.1 per cent.
  • The U.K.’s FTSE 100 Index was little changed.
  • The MSCI Asia Pacific Index increased 0.2 per cent.
  • The MSCI Emerging Market Index advanced 0.6 per cent to 1,001.36.

Commodities

  • West Texas Intermediate crude increased 0.1 per cent to $39.78 a barrel.
  • Brent crude advanced 0.3 per cent to $42.32 a barrel.
  • Gold strengthened 0.2 per cent to $1,747.94 an ounce.

Bloomberg.com

Read More

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

DHS Secretary Sets the Record Straight on Fake News on Portland Riots

Chad Wolf, acting secretary of the Department of Homeland Security, hit back at a press conference in DHS headquarters in Washington, D.C. on Tuesday against media reports that the Trump administrati…

Trump Raises $20 Million in First-Ever Virtual Fundraiser

President Donald Trump raised an eye-popping $20 million on Tuesday night in his first-ever virtual fundraiser, from a total of more than 300,000 individual donors who participated. This is a great …

ACLU: Constitution Requires Illegal Aliens Count Toward Congressional Apportionment

The American Civil Liberties Union (ACLU), as well as other migration lobbying organizations, claims it is “unconstitutional” not to count illegal aliens when apportioning congressional representatio…

US House poised to vote on reversing Trump’s Muslim ban

The United States House of Representatives is set to vote on Wednesday on legislation reversing President Donald Trump's controversial ban on immigration from Muslim countries. The bill, called the …

Recent Comments

Business and Economic News :: Debtly