V-shaped recovery or not?

The three months to June is set to be one of the best quarters for the S&P in 45 years

Global stocks resumed their march higher on Tuesday as investors took heart that better-than-expected surveys on business sentiment indicated companies were emerging from the worst of the global lockdowns. Equity, bond and currency markets shrugged off early concerns that a planned trade deal between the US and China was in doubt. The S&P 500 index closed up 0.4 per cent and the tech-heavy Nasdaq Composite was 0.7 per cent higher, closing for a fresh all-time high.

The moves extended a rally that began in March, driven in part by central banks’ aggressive plans to stimulate the economy. The three months to June is set to be one of the best quarters for the S&P in 45 years, according to Bespoke Investment Group, a New York analysis company. European stocks had their best day in a week, as the regional Stoxx 600 index rose 1.3 per cent. Germany’s Dax was the best performer, gaining 2.2 per cent.

Surveys of business executives in Europe’s three largest economies suggested they were markedly more upbeat in June than in the previous months. So-called purchasing managers’ indices, surveys of business confidence, across Europe were better than forecasts but most businesses were reporting a contraction in activity compared to the previous month.

https://www.ft.com/

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