Once again the markets embraced an optimistic outlook regarding the current coronavirus situation, setting aside fears over the long-term economic impact of the pandemic AND the ever-growing tensions between the US and China to instead focus on another round of global easing measures.
The FTSE led the charge on Tuesday, returning from the Bank Holiday weekend feeling refreshed and rejuvenated. That’s because Boris Johnson gave the public more details on how the UK is going to stagger out of lockdown.
Perhaps in an attempt to distract from Dominic Cummings’s excruciatingly unrepentant press conference, the Prime Minister revealed that all non-essential shops can open from June 15th, while outdoor markets and showrooms can start trading from June 1st.
Relieved at the prospect of the economy coming out of hibernation, the FTSE shot up by 100 points, leaving it at a near-4 week high just shy of 6100.
As for the Eurozone, reports that both Spain and Germany are easing travel restrictions has given a big boost to the region, as has the latter’s €9 billion bailout of Lufthansa. The DAX climbed towards 11500 as it rose 0.9%, with the IBEX up 1.2% and the CAC climbing 1.5%.
Even with talk of a ‘new cold war’ between the US and China over the weekend, the relationship between the superpowers disintegrating in the face of repeated Trump attacks and Beijing’s intentions for a new national security law in Hong Kong, the Dow Jones is aiming to indulge in the same buoyant mood as its European cousins this afternoon.
The futures have the Dow adding around 0.8%, a move that would leave it within 40 to 50 points of 25000 – a major milestone, given it sits beyond the midpoint between February’s 29500 all-time highs, and March’s sub-18200 lows.
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