Global markets on the rise despite controversial data
Global stock markets are on a rapid growth streak for the second week straight. The optimism has been spurred by President Trump’s reveal of new framework for the US economy’s reopening, as well as similar good news from other countries
Investors switched to bullish tactics. Japanese and South Korean stocks have gone up 3%, following the news of successful trials of new antiviral drug, developed by Gilead Sciences. Asian indexes, however, were driven down by negative data on Chinese GDP.
Major European markets, as well as Wall Street futures have gained 3% during early trading hours in Europe, driving the gains made by STOXX 600 in the last two weeks up by around 8%.
Chief Investment Officer of Saxo Bank Steen Jakobsen believes that the investors are ignoring negative data and hope for the economic restarts soon.
The updates from China, meanwhile, had revealed, that the country’s economy is reducing for the first time in the last 28 years. National GDP has reduced by 6.8%, slightly surpassing the forecasts.
Retail sector has also been impacted by the pandemic stronger than expected. At the same time, the global industrial output did not reduce noticeably.