The prospect of more economic stimulus, and a 5-year high for stocks in China, allowed investors to ignore another disastrous weekend for covid-19 cases.
The daily figure in the US is stubbornly above 50,000, India has just become the third most infected nation with 697,413 known cases, while globally cases now sit at 11.4 million. There have also been warnings about the severe long-term health impact of even a ‘mild’ instance of the illness.
But, with China’s CSI300 Index at its best levels since summer 2015, and the Shanghai Composite surging 4.2%, the European markets found plenty of reason to close their eyes and rocket forwards.
The FTSE – which led the way with a 2.5% rise, leaving it in the ballpark of 6300 – had more reason than most to celebrate. After a £1.57 billion arts package was confirmed on Sunday night following ‘leaks’, speculation has turned to Wednesday and what is being framed as a ‘mini-budget’ from Rishi Sunak.
Measures doing the rounds include a 6-month pause on stamp duty, a £111 million expansion of trainee programmes, a potential cut to VAT, and a £500 voucher for all UK adults to spend in struggling sectors like hospitality and face-to-face retail.
It may be a case of the FTSE setting itself up for disappointment come the Chancellor’s statement, but at the moment it is more than willing to indulge in a bout of optimism.
Elsewhere the DAX and CAC both were up 2.4% apiece, sending the German bourse above 12800 while leaving its French cousin a whisker away from 5100.
Returning from a weird 4th July weekend, the Dow Jones is looking ready to join in with Europe’s giddy start when trading gets underway stateside. The futures have the index up close to 550 points this afternoon, with little currently scheduled standing in its way.
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