Reverting back to the optimism that started to creep in towards the end of April – before Donald Trump opened his big mouth and unleashed an election-eyeing attack on China – the Europe markets all rebounded on Tuesday.
With Boris Johnson likely to unveil some form of lockdown plan this week, Italy and Spain easing restrictions, and California to follow suit on Friday, investors decided to turn away from the US-China tensions to focus on the idea that the worst part of the pandemic may be approaching its end.
The FTSE, which avoided the more serious losses seen on Monday, added close to 100 points, lifting it back to 5850. BP (LON:BP) and Shell (LON:RDSa) had a strong start, up 4.8% and 4.6% respectively, while the UK banking sector saw gains of 2%, for HSBC, and 3.5%, for Barclays (LON:BARC).
In terms of data, the UK has the final services PMI for April to nervously look forward to. Given that the flash reading came in at 12.3, it really can’t afford to be revised any lower.
The DAX, meanwhile, reclaimed 170 points, to tease 10650, with the CAC pushing on towards 4470 with a 2.5% bounce.
As for the Dow Jones, it might be once again looking to test 24000 later on. The futures are currently pencilling in a 200 point increase, one that would push the index to 23950.
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