Stocks Rally On Economic Recovery Hopes


Stocks rally on economic recovery hopes

London, Dec 1 (UrduPoint / Pakistan Point News - 1st Dec, 2020 ) :Stock markets rallied Tuesday on economic recovery hopes based on upbeat Chinese data and expectations of Covid vaccinations by 2021, though surging virus infections kept traders in check.

The Dollar retreated once more against the euro, while bitcoin fell back after striking Monday a record-high close to $20,000.

Oil prices flattened as members of the OPEC oil producers cartel delayed until Thursday talks with allies over a possible extension to output cuts to support the pandemic-stricken market.

"December has started on the front foot, with solid gains across the board for stock markets... as investors took heart from the China PMI numbers that showed there was a solid recovery in play in the world's manufacturing heart," noted Chris Beauchamp, chief market analyst at IG.

November saw New York's Dow index enjoy its best month in almost 34 years -- after better-than-expected results from several coronavirus drugs and hopes they will begin to be rolled out before the end of the year.

London's benchmark FTSE 100 index was up 2.0 percent in afternoon deals Tuesday, while Shanghai closed up 1.8 percent.

Analysts said the prospect that millions of people will start getting a jab within weeks will allow traders to bet on a strong recovery in the world economy next year.

The European Medicines Agency on Tuesday said it would hold an extraordinary meeting on December 29 "at the latest" to consider emergency approval for a Covid-19 vaccine developed by Germany's BioNTech and US giant Pfizer.

Meanwhile the global economy might get back to pre-pandemic levels by the end of next year as vaccines help propel recovery, but growth is likely to be uneven, the OECD said.

Activity in China's factories expanded at its fastest pace in a decade last month, data has showed, the latest sign that the world's second biggest economy is well on track to recovery from the coronavirus.

"Flashing green lights at the end of the tunnel suggest investors should look through the immediate Covid-19 concerns and focus on the future, which seems incredibly bright and bullish," said Axi's Stephen Innes.

However, he added a note of caution that "one cannot be certain what the landscape will look like on the other side".

The spread of the virus is causing serious concern in the United States.

Federal Reserve boss Jerome Powell warned: "The rise in new Covid-19 cases, both here and abroad, is concerning and could prove challenging for the next few months." - Key figures around 1245 GMT - London - FTSE 100: UP 2.0 percent at 6,388.57 points Frankfurt - DAX 30: UP 1.0 percent at 13,419.21 Paris - CAC 40: UP 1.0 percent at 5,575.95 EURO STOXX 50: UP 1.0 percent at 3,528.29 Tokyo - Nikkei 225: UP 1.3 percent at 26,787.54 (close) Hong Kong - Hang Seng: UP 0.9 percent at 26,567.68 (close) Shanghai - Composite: UP 1.8 percent at 3,451.94 (close) New York - Dow: DOWN 0.3 percent at 29,638.64 (close) Euro/dollar: UP at $1.1972 from $1.1927 at 2230 GMT Pound/dollar: DOWN at $1.3320 from $1.3326 Dollar/yen: UP at 104.38 Yen from 104.28 yen Euro/pound: UP at 89.83 pence from 89.49 penceWest Texas Intermediate: DOWN 0.3 percent at $45.21 per barrelBrent North Sea crude: FLAT at $47.84 per barrel