Europe maintained its arbitrary optimism throughout the session, joined in its gains by the Dow Jones.
Like pretty much every day since the coronavirus became a major market concern, Tuesday has seen just as much debatable ‘good’ news for investors to glom onto as unquestionable bad news for them to try and ignore. After all, the morning’s headlines were full of fears that the illness could come to infect 60% of the global population, with the total death toll crossing 1000.
Nevertheless, investors’ appetite to keep buying – alongside the hopes that the world’s central banks are prepared to step in to dull the impact of the outbreak – produced another strong rebound for the European indices.
The DAX rocketed to an all-time high of 13650 as it added 170 points, while the CAC crossed 6050 after rising 0.6%.
Even the FTSE managed to rise 0.9%, leaping past 7500 once more. And this despite gains for sterling, which added 0.3% against dollar and euro alike following a broadly encouraging morning for GDP data (the 0.3% rise in December more so than the stagnation in Q4 as a whole).
The Dow Jones wasn’t quite enthused as its European peers. However, that’s in part because the index’s own gains on Monday helped inspired the growth seen by the FTSE, DAX et al. Instead the Dow added 120 points, lifting it back towards 29400, and putting another run at its own record peak on the table this week. That is, unless the negative coronavirus headlines don’t reach critical mass once again.
It will also be curious to see whether or not the results of this evening’s New Hampshire primary have any effect on the Dow. The Iowa caucus gained little market attention, at least partially because it was so unclear who the actual winner was. There likely won’t be any such confusion come tomorrow morning.
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