The US stock market showed growth a day ago amid news of a vaccine against COVID-19. In addition, signs of a recovery in the global economy added to the positivity. Restrictions and quarantine measures are systematically lifted, which means that market participants begin to feel more confident.
At the same time, according to experts, more enthusiasm rose on the news about the opening of the economies of the world. So far, this was the most significant impulse of the market yesterday.
Securities of the tourism sector not only in America, but also in Europe, were marked by growth. Mitigating travel restrictions is causing good emotions in the market. It can be recalled that it became known the other day that Germany was ready to lift the ban on tourist trips to more than 30 countries from the middle of next month, provided that there would be no new outbreaks of coronavirus infection. At the same time, the document dealt with trips not only to EU countries; Iceland, Norway, Switzerland, Liechtenstein, and the United Kingdom will also be open to visitors.
Following Germany, another European country, Spain is also going to open borders for foreign tourists in July this year.
The travel industry was very well supported by the news of the successful test of the coronavirus vaccine. To date, several companies in the field of biotechnology have announced the work on a drug to cope with COVID-19.
This month, the consumer confidence index in America increased to the level of 86.6 points, while it was at 85.7 points earlier. Nevertheless, preliminary estimates of experts were higher: it was assumed that it would grow to 86.9 points.
At the same time, statistics on Tuesday reflected a decline in the index of economic activity in the United States over the past month. Moreover, the decline was a record 16.74 points. In comparison, in March the decrease was only 4.97 points.
The Dow Jones Industrial Average index became 2.17% or 529.95 points higher by the end of trading on Tuesday, which allowed it to occupy a line of 24,995.11 points.
The Standard & Poor's 500 Index, on the contrary, reflected an increase of 36.32 points, which recorded an increase of 1.23%. The index level at the close of Tuesday's trading, thus, was at around 2991.77 points.
The Nasdaq Composite index also increased by 0.17%, or 15.63 points, and stood still at the level of 9340.22 points.
Yesterday's trading in the Asia-Pacific region began with multi-directional dynamics. Market participants behaved with restraint amid news of emerging Hong Kong protests over China's pressure and national security law. In response to the bill, the government of the United States is going to introduce control over operations, as well as freeze part of the assets owned by officials from China. Moreover, Hong Kong also risks losing its status as a global financial center.
The growing tension between China and the United States, of course, complicates the work of investors and makes them behave more restrained.
Hong Kong's Hang Seng Index is down 0.47% today. It was followed by the Shanghai Composite of China, which lost a little less - 0.2%.
On the other hand, Japan's Nikkei 225 Index felt positivity and rose 0.39%, which allowed it to slightly win back its previous losses. The country's authorities intend to begin implementing a new package of incentive measures to support the state's economy in the context of coronavirus infection in the near future. This, of course, will be an additional factor in strengthening the stock indicators of Japan.
The KOSPI index of South Korea increased by 0.2%. They are also waiting for a softening of financial policy in the form of a reduction in the key interest rate, which will favorably affect the country's overall economic indicators.
European stock indexes showed rather restrained positive dynamics this morning. The reason, albeit small, but optimistic, was the expectation of the next plan to maintain the EU economy, which the European Commission should present.
The Stoxx Europe 600 region's largest enterprises index was 0.43% higher at 350.43 points.
The UK FTSE 100 Index is up 0.98%. The German DAX Index is up 1.02%. The French CAC index added the most - 1.12%. The Italian FTSE MIB index rose moderately by 0.19%, while the Spanish IBEX 35 showed a rise of 1.32%.
One way or another, external factors add to the positive European stock market. Among them, it is necessary to highlight the decision of Germany and France to sign a joint plan of action to overcome the crisis created by the coronavirus pandemic. The budget for the future tranche for this purpose should be approximately 500 billion euros. However, not all members of the union were delighted with this news: Denmark, Austria, Switzerland and the Netherlands protested.
The escalation of the conflict between the US and China, which, however, the EU countries cannot have any significant influence on, also annoyed investors, so they remain in a position of expectation.
The material has been provided by InstaForex Company - www.instaforex.com