The Dow Jones let rip after the bell, with signs of improvement regarding covid-19 in the United States, and the EU’s €750 billion rescue-package, key factors behind its rise.
Monday saw just shy of 60,000 new covid-19 cases, a significant retreat from last week’s 76,000-approaching peaks. And though, to be clear, the US is far from out of the woods – 7 states, and Puerto Rico, just posted record high hospitalisations – investors appear to have taken heart from a Trumpian turnaround regarding face masks, the President appealing to his base the only way he knows how, by labelling the protective coverings ‘patriotic’.
Whatever the exact reason, the Dow Jones shot up by nearly 300 points, nearing 27,000 for the first time since last Wednesday’s aborted rally. If it closes at these levels, it will be its best finish for almost to 5-weeks.
Despite this gangbusters start from the US – the Nasdaq also hit a fresh all-time high, and that’s before Tesla and Microsoft report later this week – the European indices lost most of their enthusiasm as the session went on.
The DAX reduced its gains by around a third, leaving it with a 0.9% increase to 13175 – still comfortably a 5-month high. The CAC climbed just 0.1%, a huge loss of momentum, with the Spanish Ibex, which at point was up 1.7%, now effectively flat on the day.
The FTSE, meanwhile, tipped into the red, falling 0.1% to return to 6250 after bouncing its head on a 6300 ceiling once again.
Excited for Mike Pompeo’s arrival in London, and the potential US-UK trade talks that might follow, the pound climbed 0.4% against the dollar and 0.1% against the euro, adding to the FTSE’s mining-led decline.
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