LONDON/SINGAPORE (Reuters) – global stocks rose to a 10-week high on Thursday, as investors hopes up, or recovery, is a corona virus-driven recession, while the price of oil strengthened.
A FILE PHOTO of the German stock index DAX graph is shown, on the stock exchange in Frankfurt am main, Germany, 5. May, up to the year 2020. REUTERS/Staff
Italian bonds remained on their multi-week lows, continuing the profit of a German-French plans for a 500-billion-euro corona virus recovery fund, the ignoring of a radical counter-proposal in the works.
Europe’s STOXX 600 index recovered from earlier losses to add 0.4%. The blue-chip index FTSE 100 gained 0.4 percent.
U.S. stocks jumped more than 1% at the open optimistic on the earnings reports from the retail sector. The S&P 500 added 1.05% and the Dow Jones Industrial Average rose 1.03%. The world equity index by 1.2% more, the highest level since the 9. March.
“We are in one of those situations where, if there is no bad news, the path of least resistance is for stocks strong move,” said James Athey, investment director, Aberdeen, the Standard of investments.”
Two-thirds or 223 of the Fund managers interviewed, the count of the Bank of America, current profits are in a bear-market rally.
Oil gained and gold rose to $1,748.34 an ounce. [GOL/]
Italy’s 10-year bond yield held near five-and-a-half-week lows hit after the recovery fund notice. The gap, with the Germany 10-year yield was at 210 basis points, close to Tuesday’s five-week lows. [L8N2D21OU]
The U. S. dollar extended its decline by 0.3% on a three-week low. The euro rose slightly by 0.2% to $1.0960, close to Tuesday, the two-week peak of $1.09755, supported by the German-French proposal for the recovery fund.
The difference in the new Zealand Central Bank chief Adrian Orr back from the possibility of negative prices, a prospect, the flag he had only a few days before. That helped support the kiwi dollar.
Doubts about the outlook for commodity prices held back. Japanese companies that broke the trust, a decade of falling lower as the economy is in a recession. Australian retail sales suffered their steepest ever fall in the month of April.
And the U. s. economy has not lost ground again until sometime after the next year, the nonpartisan Congressional Budget Office said on Tuesday.
Brent crude oil futures were at $35.51 per barrel, up 2.5%. U.S. crude oil was 2.3% higher at $32,69? a barrel on signs of an improving demand and a drawdown in U.S. crude inventories. [O/R]
Not to relax “while countries have begun to restrictions on economic and social activities, economies back to where things were before the outbreak,” said the strategist in Singapore, DBS bank in a note.
“The geopolitical tensions, especially between the U.S. and China, have also returned, and are probably still the elections in November will intensify in the U.S. market.”