Global stocks surge, triggered by solid economic data
- 10th August 2020
- Posted by: Hakeem
- Category: Stock
Global Stocks rose high on Monday as industrial activity in the world’s second-largest economy gained strength. This is another sign of recovery after an impressive U.S Jobs report released on Friday.
The broader Euro STOXX 600 rose 0.6%, with London’s FTSE buoyed 1% and European oil and gas shares surging 2% on rising oil prices.
Shares of oil majors, BP and Royal Dutch Shell, gained 3.4% and 2.7% respectively after Saudi Aramco raised optimism about growth in demand in the Asian oil market. Iraq had also pledged to curb its oil production.
“China is so much in advance in this process of lockdowns and exiting lockdown, that any good signs for the Chinese economy are essential (for the world economy),” said Florian Ielpo, head of macroeconomic research at Unigestion.
Deflation at China’s factories eased in July, data showed, driven by a rise in global energy prices and industrial activity climbing back towards pre-coronavirus levels. In other words, industrial output in China is steadily returning to levels seen before the pandemic paralyzed huge swathes of the economy, driven by pent-up demand, government stimulus, and surprisingly resilient exports.
Stephen Innes, Chief Global Market Strategist at AxiCorp in a note to Nairametrics explained the macros affecting stock traders, especially in the American stock markets. He said;
“US Mega Cap stocks put in another solid week, but fatigue is showing in Software/ SaaS. Single-stock dispersion and volatility underneath the surface are picking up with a focus on Small and Midcap earnings.
“The US election will become more of a focus once the earnings season is over even more so as most of the worst-case scenario leaves US President Donald Trump out of the equation.
“The President is growing desperate in the face of rising infections and falling poll numbers. And if he thinks it will boost his polling numbers, look for him to lash out at China more aggressively even heaping on additional tariffs.”