The US stock exchanges closed its trading in the green zone on Monday. The main stock indicators have been growing for two consecutive trading sessions. Most notably, the S&P 500 and Nasdaq were once again able to update their previous highs. This is mainly due to the news on the release of a vaccine against coronavirus infection and the corresponding prospects for its treatment.
Positive dynamics also arose against the backdrop of news from the US Food and Drug Administration, which officially authorized the use of blood plasma from those who have already had COVID-19 in order to treat new cases of infection. However, this method has not yet received widespread approval: it is necessary to wait for the results of the research confirming its effectiveness.
In addition, US President Donald Trump is ready to approve an experimental vaccine, which was developed by AstraZeneca in cooperation with the University of Oxford. At the same time, Trump will most likely hasten to make this decision before the start of the November election campaign.
At the moment, there is such a trend on the market that any positive news about the fight against coronavirus infection, particularly the creation and release of a drug, causes strong positive emotions among market participants and inevitable growth.
Among other things, market participants are still closely monitoring the changes in the number of COVID cases worldwide hoping to see a hint of stabilization of the epidemiological situation. Also, consequently spotting for signs of the beginning of a recovery process in the economy. It is believed that as soon as the active growth of infection stops, this will signal a sustainable recovery of the global economy.
In this regard, it is also important that investors have not yet reacted in any way to Trump's statement that he will be ready, subject to certain conditions, to completely abandon economic cooperation with China. According to Trump, the PRC deceived the United States for a long period, depriving hundreds of billions of dollars of possible income. Moreover, if cooperation between the countries continues, monetary losses will grow significantly. Of course, this is only according to Trump's personal opinion, but even this can put pressure on the US stock markets.
Traders are also looking forward to another important event - the meeting of the heads of world central banks, which is to take place in Kansas City. This year's symposium will be held online due to the threat of the spread of coronavirus infection. The event is to be attended by the heads of the Central Bank, finance ministers, as well as leading scientists in the field of economics and finance. The results and decisions that will be taken during the discussion will have a significant role in the development of the economy in the future.
The Dow Jones Industrial Average index rose 1.35% or 378.13 points on Monday, which moved it to the level of 28 398.46 points. It managed to crossed the strategically important mark of 28,000 points which happened for the first time in six months. To date, the indicator is only 4.2% of its record, which was set in mid-February.
The Standard & Poor's 500 Index rose 1% or 34.12 points, which allowed it to rise to its record level of 3,431.28 points.
The Nasdaq Composite Index rose 0.6% or 67.92 points. Its current level has stopped at 11,379.72 points. At the same time, during the trading day, it reached its maximum historical level of 11,462.05 points.
Asian stock markets, on the other hand, also experienced a predominantly positive mood on Tuesday. Major stock indicators are growing with few exceptions. The main positive wave came after news of the release of a vaccine against coronavirus infection and new methods to combat the pandemic.
Despite the fact that it is gradually being able to cope with the growth of new cases of coronavirus infection, the danger of a second wave of the pandemic has not yet faded. Moreover, new causes of tension have appeared, which, in particular, include a repeated case of infection, recorded in Hong Kong. According to the data, there was one case of a treated COVID patient, who once again tested positive with the virus. This may become a reason for new research and not too pleasant assumptions about the mutation of the coronavirus, which doctors have already spoken about earlier. Previously, it was suggested that immunity to the disease can only persist for several months, after which re-infection may occur. Of course, this turn of events cannot please market participants.
Japan's Nikkei 225 Index rose 1.7%.
China's Shanghai Composite Index, on the other hand, lost ground a bit and dropped 0.4%. The Hong Kong Hang Seng Index followed suit and parted with 0.6%. Even possible progress in the negotiation process on a trade agreement between the US and China did not help in this situation. The discussion between the representatives of both states, took place through a phone call and talked about the implementation of the first phase of the agreement. At the same time, President Trump spoke out quite harshly on this score and made it clear that he is ready even for a complete cessation of trade relations with China.
South Korea's Kospi Index is up 1.4%.
The Australian S & P / ASX 200 index also slightly went up by 0.3%.
European stock exchanges also traded positively on Tuesday and managed to receive support from the US stock markets, which are showing strong and rapid growth.
The Stoxx Europe 600 Index of Large Enterprises in Europe is up 0.34% Tuesday morning, placing it at 372.10.
The UK FTSE 100 Index gained 0.18%. The German DAX Index rose 0.48%. France's CAC 40 jumped 0.73% and became the top gainer. Italy's FTSE MIB Index gained 0.23%. Spain's IBEX 35 Index climbed 0.57%.
