Once again – it’s a recurring pattern this week – the markets had the blinkers on, ignoring the troubling situation between China and Hong Kong (and what that means for the relationship with the US) to indulge in an optimistic outlook of the current situation.
Ireland and the Netherlands are the latest European countries to eye reopening; the former is potentially looking to accelerate plans next week, while the latter has brought forward easing-measures to July 1st, 2 months ahead of initially planned. That joins the UK’s retail intentions for June 1st and 15th, and the potential for the lifting of some travel restrictions in Spain and Germany.
All this comes with a pretty massive warning, however. In Italy and South Korea, two of the countries a fair few steps ahead of everyone else, the number of coronavirus cases post-easing have increased day-on-day, with Korea even considering a return to restrictions due to the spike.
However, the markets weren’t interested in the risks, only the rewards, immediately resuming the week’s rally as trading got underway.
A 45 points increase lifted the FTSE to 6180, leaving it at levels last seen at the end of the first week of March. The DAX, meanwhile, added 75 points as it crossed 11730, with the CAC above 4700 thanks to a 0.9% rise.
Galloping ahead last night, the Dow Jones is looking to climb another 200 points when the bell rings on Wall Street, eyeing a 25700-plus open for the first time since March 6th. Between then and now sits the usual Thursday jobless claims, expected to come in at 2.1 million, alongside the 2nd first quarter GDP reading, set to remain at -4.8% at the annualised rate.
"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."