Stocks advance as easing lockdowns spurs optimism

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“Rather, it’s more of the same sentiment-driven action with links to reopening hope, monetary and fiscal policy support, the fear of missing out on further gains, and assumptions that things can only get better after having gotten so bad.”

As some of the worst-hit countries — including eurozone members Spain, Italy and France — take heart from slowing COVID-19 death and infection rates, they are gradually allowing businesses to reopen.

“Rather, it’s more of the same sentiment-driven action with links to reopening hope, monetary and fiscal policy support, the fear of missing out on further gains, and assumptions that things can only get better after having gotten so bad,” he said in a note to clients.In Wuhan, the central Chinese city where the coronavirus outbreak first emerged, there have been reports of new infections, while South Korea announced its biggest spike in new cases for more than a month.

Tokyo and Shanghai only dipped 0.1 percent however, while there were gains in Wellington and Bangkok. Elsewhere Tuesday, oil prices jumped after Saudi Arabia said it would slash an extra one million barrels per day from its June output.

 

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