Shares drive ahead amid hopes for lifting of Covid-19 global lock downs

World shares forged ahead and oil prices also drove higher as well, as investors shrugged off Chinese-US tensions to focus on more stimulus in China and a re-opening world economy.
Shares drive ahead amid hopes for lifting of Covid-19 global lock downs
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World shares forged ahead and oil prices also drove higher as well, as investors shrugged off Chinese-US tensions to focus on more stimulus in China and a re-opening world economy.

The Ftse-100, rose 1.2%, the Euostoxx index rose almost 1%, while the S&P 500 in the US was preparing to go above 3,000 points for the first time since early March, when the economic impact of the coronavirus was just becoming clear.

Europe was powered by a near 7% surge in travel and leisure stocks, including at 35% gain by holiday firm TUI and 20% jump in Aer Lingus and British Airways owner IAG, after Spain said that quarantine-free tourism would resume next month.

Italian, Spanish and other southern eurozone government bonds also gained on the hopes, and a weaker dollar helped the euro, the pound, and holiday-hotspot currencies like Turkey’s lira and Mexico’s peso.

“Investors are trying to be optimistic here and think that everything is going to be Ok,” said Christopher Peel, the chief investment officer of Tavistock Wealth. “You can’t fight it ... I’m not trying to fight it. But it is totally disconnected from economic reality.”

"US-China tensions continue to simmer in the background, but equity investors appear more interested on the prospect of economies reopening around the globe,” said Rodrigo Catril, a senior FX strategist at NAB.

Oil prices were supported by falling supplies as Opec cut production. Brent crude rose 71 cents to $36.24 a barrel.

- Reuters

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