US stocks jump as investors welcome easing of coronavirus restrictions
US stocks extended gains seen across Asia and Europe as the global easing of lockdowns boosted optimism among investors.
The Dow Jones index was up 2.47 per cent higher. The S&P 500 rose 1.93 per cent to bring 3,000 while the Nasdaq edged up 1.39 per cent.
European stocks opened higher this morning, as investors welcomed another positive economic reading out of Germany. Germany’s Dax jumped nearly three per cent before settling up 0.66 per cent, after the GFK consumer climate data beat its forecast. France’s Cac is up 0.95 per cent.
The FTSE 100 is up 1.12 per cent as travel stocks surged on hopes that a European summer could be salvaged. Reports have said Germany plans to lift travel warnings for 31 European countries on 15 June.
Investors were not phased by the US ratcheting up its attack on China over the weekend. China denounced a move by the US Commerce Department to expand its blacklist of firms, for alleged human rights abuses.
Foreign ministry spokesman Zhao Lijian urged the US to “correct its mistakes, withdraw the relevant decisions, and stop interfering in China’s internal affairs”.
US stocks instead took comfort in the vaccine developments and gradual easing of lockdown restrictions. Biotech firm Novavax soared 21 per cent in premarket trading after announcing it had started the first human study of its experimental coronavirus vaccine.
California can now reopen in-store retail businesses and places of worship following a full lockdown.
Fawad Razaqzada, market analyst with ThinkMarkets said: “A couple of months ago, not many – even the most optimistic of bulls – would have foreseen this. But here we are, central banks once again came to the rescue and up we go despite a growing list of worries, that includes the potential for a complete breakdown in the US-China trade talks.”
The New York Stock Exchange today reopened its trading floor after closing for nearly two months due to the pandemic.
It is not a complete return to normal, however, as safety concerns mean only a quarter of brokers will return to the floor. They will have to wear face masks and adhere to social distancing rules.