· U.S. stocks advance as some states reopen for business
Wall Street gained more than 1% on Monday at the onset of a hectic earnings week, as investors turned a hopeful eye toward several U.S. states that are relaxing shutdown restrictions put in place to curb the spread of the COVID-19 pandemic.
In afternoon trading, the Dow Jones Industrial Average .DJI rose 358.51 points, or 1.51%, to 24,133.78, the S&P 500 .SPX gained 41.74 points, or 1.47%, to 2,878.48 and the Nasdaq Composite .IXIC added 95.64 points, or 1.11%, to 8,730.16.
All three major U.S. stock averages advanced, and are all now within 20% of their record closing highs reached in February, with the benchmark S&P 500 on track for its best month since 1987, after trillions of stimulus dollars helped U.S. equities claw back much of the ground lost since the coronavirus crisis brought the economy to a grinding halt.
But some analysts believe gains may be limited unless there is progress in finding treatments for the disease.
Several states have begun easing stay-at-home restrictions, in efforts to revive economies and get Americans back to work following crushing job losses.
Economists expect first-quarter U.S. GDP to have shrunk at a 4% annualized rate when the Commerce Department releases its report on Wednesday.
Market participants will also pay close attention to the U.S. Federal Reserve when it concludes its monetary policy meeting on Wednesday.
· Stock futures flat after Monday’s rally on hopes for economy reopening
U.S. stock futures opened flat in overnight trading, following a rally in the previous session as plans to ease coronavirus-induced lockdowns fueled investor appetite for riskier assets.
Dow futures rose 20 points, indicating a gain of 0.05% at the open on Tuesday. The S&P 500 and Nasdaq were also flat, with gains of 0.08% and 0.11%, respectively.
A partial reopening of the economy — in Alaska, Georgia, South Carolina, Tennessee, Texas and others — is boosting investor sentiment, with certain U.S. businesses poised to benefit from the first wave of consumers emerging from the coronavirus driven quarantine.
· European markets close higher as investors look for further lockdown easing
European markets closed higher Monday as investors await central bank meetings this week that could decide further stimulus measures to reboot economies deeply damaged by the coronavirus pandemic.
The pan-European Stoxx 600 provisionally closed up by 1.6%, with autos adding 4.6% to lead gains as all sectors and major bourses traded in positive territory.
Investors in Europe are watching how the region gradually exits lockdown strategies that have crippled economies in Europe. Central bank meetings this week are also in focus as further stimulus measures could be announced.
The U.S. Federal Reserve has a two-day meeting starting Tuesday this week and the European Central Bank (ECB) meets Thursday.
· Asia stocks little changed as oil prices continue to fall; HSBC earnings ahead
Stocks in Asia were little changed on Tuesday morning as oil prices continued to slip following an overnight plunge on fears that global storage capacity will soon be filled as a result of weak demand caused by the coronavirus pandemic.
In Japan, the Nikkei 225 dipped 0.17% while the Topix index shed 0.25%. South Korea’s Kospi, on the other hand, added 0.36%.
Over in Australia, the S&P/ASX 200 shed 0.23%.
Overall, the MSCI Asia ex-Japan index traded 0.08% higher.
On the earnings front, HSBC is expected to post its first-quarter results on Tuesday.
Reference: CNBC, Reuters
Thai
Eng