Stock markets rally on economy recovery hopes

News Image

By MG News | July 07, 2020 at 08:20 AM GMT+05:00

0:00

July 07, 2020: Stock markets rallied again Monday, with fresh signs of economic recovery resonating with investors more than a surge in coronavirus infections worldwide.

The easing of lockdowns is providing hope the global economy will bounce back quickly from an expected recession this year, with England's pubs reopening at the weekend and tourist attractions around Europe now either open or planning to.

Last week, better-than-forecast data on US job creation and factory activity provided a boost to confidence, as did hopes for a vaccine, which observers say is key to kick starting any recovery.

Data Monday showing the massive US services sector grew in June after the coronavirus pandemic caused its steepest-ever contraction in the prior month, supported the post-holiday rally on Wall Street.

That data along with the belief that US cities and states will not reimpose strict lockdown measures despite surging virus cases fueled a healthy day for stocks, with the broad S&P 500 finishing up 1.6 percent.

"The market is showing more resilience than I expected. I didn't think we'd be immune from these bad virus numbers," Karl Haeling of LBBW said.

Tech stocks were among the big winners, with the Nasdaq hitting its third straight record close and Amazon shares finishing above $3,000 for the first time.

Investors on both sides of the Atlantic also took a cue from equities in China, "with the world's second largest economy seeing a huge uptick" with its main stocks index closing with a gain of nearly six percent, noted Joshua Mahony, senior market analyst at IG trading group.

Traders have piled back into stocks in recent months -- with the help of vast government and central bank support -- and analysts have suggested the gains are also being helped by a fear of missing out on the rally.

AFP/APP

Related News

Name Price/Vol %Chg/NChg
KSE100 129,401.16
96.04M
0.94%
1201.73
ALLSHR 80,536.89
267.96M
0.94%
749.26
KSE30 39,560.79
30.60M
1.17%
455.79
KMI30 188,342.50
28.67M
0.76%
1426.89
KMIALLSHR 54,544.14
114.41M
0.63%
342.26
BKTi 34,240.29
15.51M
2.28%
763.61
OGTi 28,048.30
2.51M
0.31%
85.72
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 106,690.00 106,710.00
105,440.00
940.00
0.89%
BRENT CRUDE 67.20 67.29
67.05
0.09
0.13%
RICHARDS BAY COAL MONTHLY 97.50 97.50
97.50
0.70
0.72%
ROTTERDAM COAL MONTHLY 103.80 103.80
103.80
-3.45
-3.22%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 65.50 65.65
65.34
0.05
0.08%
SUGAR #11 WORLD 15.70 16.21
15.55
-0.50
-3.09%

Chart of the Day


Latest News
July 02, 2025 at 10:08 AM GMT+05:00

PSX Opening Bell: Upbeat and Unstoppable


July 02, 2025 at 09:53 AM GMT+05:00

Govt policy shift lowers cost of imported vehicles


July 02, 2025 at 09:22 AM GMT+05:00

Asia markets waver while Singapore stocks soar


July 02, 2025 at 06:01 AM GMT+05:00

MG Morning Breeze: Updates to Skim before Market



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg