A passerby looks at a panel displaying the falling Hang Seng Index in response to British exit from the European Union, in Hong Kong June 24, 2016. — Reuters pic
Traders are also looking ahead to the corporate earnings season, which will reveal how companies fared during the second quarter, when economy-sapping lockdowns were imposed around the planet. London, Paris and Frankfurt were all more than one per cent higher in early trade, with hopes the European Union is close to agreeing a US$750 billion economic recovery programme.
“Ongoing grim US Covid-19 infection news continues to be summarily ignored in favour of ongoing optimism regarding the timeline for the discovery and rapid roll-out of an effective vaccine... and/or more policy support for asset prices in the US economy,” said Ray Attrill at National Australia Bank.
“We do think that the global economy is now entering a multi-year recovery but there are going to be wobbles along the way,” Mary Nicola, at PineBridge Investments, told Bloomberg TV.
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