Though they may well be getting ahead of themselves, following a blockbuster session from the Dow Jones and some solid growth in Asia, the European indices pushed forward with the week’s rebound.
With no daily coronavirus deaths in China for the first time since January, Germany aiming to end its lockdown after April 19th, a falling daily death toll in Spain, improvements in Italy and signs of stabilisation in New York, investors puffed their chests out in an act of trading bravado on Tuesday.
Of course, for all those ostensible positives, you could compile an equally alarming list of negatives. France just recorded its highest daily death tally so far, Prime Minister Boris Johnson is in intensive care due to his coronavirus infection, Japan is preparing to declare a state of emergency and the brewing unemployment crisis in America is routinely being ignored by the markets.
Nevertheless, Europe kept up the pace set on Monday. The FTSE added another 160 points, tickling 5750 as it strives to escape the 5350-5600 trading bracket is had lurked in for the last week or so. The DAX climbed 3.5% to strike an effective 4-week peak of 10430, while the CAC hit 4475 thanks to a 2.7% increase.
As for the Dow Jones, after surging an astonishing 1600 points – still a huge movement in a year full of them – the index is looking to rise a further 400 points. That would push the Dow back above 23000, a level last seen in mid-March. Before anyone gets too excited, it still has a way to go before it reaches its 29500-plus all-time highs struck just over 2 months ago.
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