The global rally in stocks showed no signs of abating Wednesday as investors continued to bet on a quick economic recovery from the coronavirus pandemic. The dollar extended its recent decline.
South Korean shares led gains in Asia, with stocks also climbing in Japan, Hong Kong and Australia. U.S. equity futures pushed up after the S&P 500 closed at its highest since early March. Brent crude extended its rebound above $40 a barrel as investors eyed a potential extension of record production curbs by OPEC+. Treasury yields ticked higher, while the yen pared an overnight decline.
Global stocks are trading at a three-month high as businesses continue to reopen around the world and manufacturing gauges show economies stabilizing following coronavirus shutdowns. That’s despite a slew of risks still on the horizon, including tense U.S.-China relations that may jeopardize a hard-won trade deal.
The sometimes-violent demonstrations across U.S. cities over the killing by police of George Floyd, an unarmed black man, aren’t yet seen as a major drag on the economy and corporate profits. Despite the unrest, Chicago will enter the next phase of its reopening plan as scheduled on Wednesday.
20,848 in U.S.Most new cases today
-9% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.029 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
-4.8% Global GDP Tracker (annualized), April