The Dow Jones went up more than 7% on Monday, April 6, as hopes of coronavirus cases slow down. Other exchanges around the world reacted with a positive note to start the week.
After a sloppy start with the oil drama earlier last week, a soaring rally was expressed in the U.S markets. The Dow Jones closed to more than 1,600 points to start the week despite a lot of analysts looking at a possible economic depression.
Stocks that contributed to the euphoric rise were Raytheon Technologies, American Express, and Visa, flying more than 11% each. Boeing carries the Dow, gaining more than 19%.
Coronavirus slowdown hopes high, oil sits at the sidelines for now
Investors were optimistic about the latest data released by Johns Hopkins University. Although it is still early to determine the overall trend, a lot of analysts are already convinced by the data:
- 30,000 new cases on Thursday, April 2
- 32,100 cases on Friday, April 3
- 33,260 cases on Saturday, April 4
- and then a slowing to just 28,200 new cases Sunday, April 5
New York, the top state that was hit with the coronavirus, reported 594 deaths on Sunday, fewer than 630 on Saturday, showing its first daily decline.
Tom Lee, head of research at Fundstrat, said in a note to clients:
“Incoming data suggests NY state might peak sooner than Cuomo’s optimistic case […]With better visibility on the healthcare crisis in the U.S., particularly, on a potential to model a national peak, we believe buyers are now taking control.”
The scheduled OPEC meeting on April 6 was also postponed and is likely to be moved on either April 8 or 9. As a result, oil dropped to almost 8% to start the week.
Other markets show signs of life
In addition to the recent data shown by the U.S., Europe is also beginning to flaunt good signs as well.
Europe’s four worst-hit countries reported declines in coronavirus related deaths as well, with Italy getting the spotlight: a new low of 525 deaths on April 5, the lowest daily number since March 19.
Spain’s toll declined for a third straight day, and the U.K.’s was lower than the previous days. France reported an additional 518 deaths, the fewest since last April 2.
With both Europe and U.S. showing good signs in flattening the curve in the coronavirus cases, here are the other countries that showed signs of optimism to start the week:
- Australia’s S&P/ASX 200 and Japan’s Nikkei 225 gained more than 4%
- Hong Kong’s Hang Seng Index rose 2.2%. Markets in mainland China were closed for a public holiday.
- The FTSE 100 added more than 3% at the open
- Germany’s DAX surged 4.2%
- France’s CAC40 rose to 3.5%
Developing countries also seem to show a positive market outlook as well to start the week. Both the Philippine Stock Exchange Index (PSEI) and Jakarta Stock Exchange (JKSE) both climbed 4%.
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