Wall Street: the Dow Jones closed its best day since 1933 to the expectation of the economic recovery plan of Congress

After several black days, the US stock markets registered a strong rebound before the possibility that the country’s Congress will soon approve a revival package that injects around two trillion dollars into the economy.

The Dow Jones recorded its best day since 1933 with a rise of 11.4 percent, which brought the index to 20,704.91 points. The Nasdaq technology index, meanwhile, rose 8.1 percent and ended the day at 7,417.86 points, while the S&P 500 did so in the order of 9.4 percent.

In Europe, the stock markets also shot up and ended with strong increases: the Dax 30 in Frankfurt was up 9.2%, the CAC-40 in Paris, 6.9%, the London FTSE 100, 7.1%, the IBEX 35 in Madrid, 6.5% and the FTSE MIB in Milan, 6.8%.

The pan-European index STOXX 600 was up 7%, but it is still on its way to its worst month since 1987, as the health crisis threatens to slow global growth, and some analysts forecast a 24% drop in European GDP in the second quarter.

The actions of travel and leisure, who had some of the biggest losses this month, They rose 2.6% in the first operations.

Mining, insurance and oil and gas companies led the progress between the main subsectors Europeans, with increases of between 5% and 6%.

The French Biomerieux jumped 30% after the company obtained US regulatory approval for a product intended for testing for coronavirus.

“The mood of the markets improves”, said the City Index analyst, Fiona Cincotta.

“The number of daily deaths in Italy fell compared to the eve of the second consecutive day and that increases the hope that this devastating epidemic will reach its peak”he added.

According to analysts, The positive attitude of investors is also influenced by the decision of the US Federal Reserve to expand the purchase of assets, a measure that yesterday contained the losses in the bags but could not avoid them.

In the currency market, the euro, which already appreciated on Monday against the dollar after the new Fed measures, was gaining 1.04% on Tuesday in front of the greenback.

Oil prices, sunk by the health crisis and divergences between producers, have also recovered. At 14:15 GMT a barrel of United States crude WTI was up 0.17% at $ 23.40 -after having exceeded USD 25 on the day–, and the North Sea barrel of Brent rose 2.15% to $ 27.61.

The debt market was stable on Tuesday.

In Asia, the Tokyo Stock Exchange jumped on Tuesday thanks mainly to the fall of the yen, the interventions of the Bank of Japan (BoJ) and the new measures of the United States Federal Reserve (Fed) to cushion the impact of the coronavirus pandemic.

The Nikkei index ended at + 7.13% and stood at 18,092.35 points. It is their highest increase in a session since February 2016 in percentage terms and since September 2015 in points. The Topix index increased 3.18%.

Since the beginning of business the Tokyo market remained very dynamic and operated optimistically throughout the dayShinichi Yamamoto, a stockbroker at the Okasan Securities firm, congratulated himself.

But it is “unlikely” that this enthusiasm it is maintained if the world’s stock markets continue to record falls, added the expert.

Short term, markets will maintain their volatility and react with extreme ups and downs since the end of the pandemic does not seem close, Yamamoto said.

Written by Argentina News

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