Firmly focused on the various lockdown easing measures being implemented – or set to be implemented – around the globe, the markets kept up their rebound throughout Tuesday.
Adding 300 points the Dow Jones once again breached 24000 after the bell, as it tries to claw back the growth lost following Donald Trump’s China-attacks last week.
Those gains meant investors had to pick and choose which pieces of data they paid attention to. For while the ISM services PMIs was far higher than forecast – at 41.8 against the 37.5 expected – the USA’s trade deficit swelled by 12%, in large part thanks to the effective erasure of international travel and tourism.
Whether or not the Dow can keep up that level of growth is, much like yesterday, going to be dependent on Trump, namely if he feels like further stoking the fires of the tensions between the US and China. Though, to be fair, the markets seem to have ignored China’s UK ambassador Liu Xiaoming labelling such talk as a ‘political virus’ that will ‘poison’ relations.
With the US perky, Europe felt more than comfortable to hold onto its own rebound. The FTSE spent the session lurking around 5850 thanks to a 90 point-plus rise, while the DAX and CAC were up 1.9% and 1.7% respectively.
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