Yesterday, the stock market in Europe began in the positive zone. The main indexes showed steady growth against the backdrop of the growing impulse of lifting quarantine measures for the COVID-19 pandemic. More and more states are starting up their production again, which is a signal to improve macroeconomic indicators in the world as a whole and in individual countries in particular. Some analysts argue that the worst times have passed; it is hoped that this is indeed so.
The German DAX index added 0.7% today, the French CAC index rose 1.3%. The FTSE index of Great Britain was marked by the highest rise: it increased by 1.7%, which allowed it to regain opportunities lost due to the holidays.
Among the news that noticeably warmed up the stock market in Europe, there was news about a more intensive exit from the quarantine measures of economies in the region. Thus, investors were very happy to learn that the tourism sector, which plays a significant role in the country's economy, has started working again in Spain. After Spain, the German tourism sector is going to come out of the shadows: an approximate date has already been set for the end of bans on tourist travel to more than 30 countries in the region. This should happen on June 15 this year. Of course, after this step, an increase in consumer spending in the eurozone should be noted.
An outside support was the news from Japan, which has completely lifted the state of emergency from all its territories yesterday. The escalating conflict between the US and China also provided an incentive for growth. According to experts, trading on the exchange has revived and continued to gain impulse, driven by positivity from the outside.
The corporate sector was also up. Securities of the German company Lufthansa immediately increased by 6% after the country's government decided to support the air carrier, since it belongs to the sectors most affected by quarantine measures and allocate a tranche of 9 billion euros, or $ 9.8 billion. However, such a subsidy may lead to a further problem in obtaining an opinion from the EU antitrust service. Nevertheless, the company's shares are rising so far.
Other air carriers also expected such support, the shares of which on one expectation of financial assistance showed more than good positive dynamics. Thus, British Airways securities grew by a record 15%. Other companies turned out to be more modest in their growth, but this was already a tremendous result after long stagnation in the market: EasyJet rose by 10%, Ryanair was in the black by 9%, and Air France KLM grew by 8%. Moreover, the Tui group as a whole moved up 18% on news of the near resumption of tourism activities.
The automotive sector in Europe also began to leap back its losses with leaps and bounds. Securities Aston Martin soared by 32%. Renault and Peugeot car manufacturers from France increased more modestly - by 5% and 3% respectively.
As a result of yesterday's trading, the Asia-Pacific stock market also recorded growth, which was justified by hopes for a quick recovery of the economies of its member countries.
Japan's Nikkei 225 Index was up by 2.55%, moving it to its highest value in twelve weeks. Firstly, the reason was the final lifting of the state of emergency from the country. Secondly, the head of the Japanese Central Bank spoke in his speech on his readiness to expand incentive policies and introduce additional support measures to mitigate the consequences of the global COVID-19 pandemic.
Securities of car manufacturer Toyota Motor Corp also grew by 4.2%, SoftBank Group Corp. added 4.3%. On the contrary, the value of Sony shares showed a slight decline, which remained within 0.2%.
China's Shanghai Composite Index was up 1.01%, while the Hong Kong Hang Seng Index climbed even higher - 1.88%. The increase came on the news about additional measures and tools for supporting business from the government.
South Korea's Kospi Index increased by 1.76%. It was followed by the South Korean consumer confidence index, which increased this month to 77.6 points, while it was at around 70.8 points a month earlier.
Australia's S & P / ASX 200 was not out of line with a 2.93% increase. It was supported by information about the government's plans to create more jobs in the country after the coronavirus pandemic.
Thus, the bulk of stock indices in Europe and Asia continues to grow despite the fact that the conflict between the US and China remains unresolved.
The material has been provided by InstaForex Company - www.instaforex.com