Last week saw cascade of worrying headlines – focused on recession realities, the Fed’s lack of interest in negative rates, and Trump’s antagonistic attitude towards China – erode the market’s fragile optimism.
Well, said optimism returned with a vengeance on Monday, investors receiving enough green signals to help them push those aforementioned issues to the back of their minds.
Trading began with Fed chair Jerome Powell promising that the central bank had plenty left in the monetary policy tank when it comes to combatting a coronavirus recession. This, combined with falling numbers of deaths in Spain, Italy and the UK, produced a triple-digit European session.
Now, with positive results from the first human trial of Boston-based biotech firm Moderna’s experimental covid-19 vaccine mRNA-1273, the day’s growth levelled-up. Vaccine news is sort of the holy grail of market-boosters at the moment, even if headlines often obscure the timelines regarding the production of such preparations.
The Dow Jones galloped out of the date, greedily taking back 670 points. That was enough to lift the index past 24350, around 1400 points off of the lows incurred last Thursday.
In turn this transformed a very strong European session into something more spectacular. A 200 point surge for the FTSE saw it touch its fingers to 6000, while a giddy 4.6% increase for the DAX sent the German bourse back above 10900.
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