Global Stocks rise on high hopes for a COVID-19 treatment
- 24th August 2020
- Posted by: Hakeem
- Category: Stock
Global stocks recorded impressive gains at London’s trading session on Monday. The boost came from high expectations for a COVID-19 treatment, coupled with the fact that investors are waiting on U.S. Federal Reserve’s annual Jackson Hole meeting scheduled to hold later in the week.
Europe’s pan-regional STOXX 600 rose 1.3%, even as the global benchmark added 0.4% after U.S regulators approved the use of blood plasma from recovered individuals as a treatment option for COVID-19.
The surge in stocks was also witnessed at Asia’s trading session, where MSCI’s broadest index of Asia-Pacific shares (ex-Japan) gained about 0.8% to move close to its six-month high. Japan’s Nikkei Index also gained 0.3%.
In a prelude to America’s trading session scheduled to open later today, Stephen Innes, the Chief Global Market Strategist at AxiCorp, gave vital macros about the world’s largest equity market. He said:
“U.S. futures indicated gains on Wall Street ahead, raising the prospect of record highs for the S&P 500. US equities were stronger on Friday with positive data surprises helping sentiment. But European markets were down.
“As we open a new trading week, most investors like to peer into the crystal ball and look well ahead while anticipating high percentage outcomes and speculating on new trends. They seem to be patient in riding the pandemic winners.
“At the same time, zero interest rates offer them the luxury to wait for the rest of the pack to play catch up over the coming months and years.
Investors and stock traders continue to increase their buying pressures on technology and health stocks, triggering these stocks to reach record highs.