Equity markets around the globe soared late Tuesday as trade data from China disregarded fears of a major collapse caused by the current coronavirus crisis, sparking optimism that world economies can soon get back on track.
Oil prices dropped over 6 percent as traders feared that the Organization of the Petroleum Exporting Countries and other producers' record production cuts would quickly balance markets pummeled by the demand blow from the pandemic.
After China's trade report, stock markets in Asia extended their gains, while risk-sensitive currencies like the Australian and New Zealand dollars as well as the pound pulled forward, mainly due to relief following the less dreary results. The Chinese yuan inched higher in the currencies market.
South Korean stocks leapt roughly 2 percent on Tuesday, their strongest rise in a week as trading data from China came in better than anticipated, though calming fears over the crisis lifted investor sentiment.
Foreigners were net sellers of stocks worth 40.5 billion won ($33.29 million) on the main index charts, extending the selloff to 29 consecutive trading. During the time they sold some 14.2 trillion won ($11.67 billion).
U.S. stocks surged as hope that US President Donald Trump will push to loosen lockdowns from the coronavirus, overshadowing troubling sales reports from JPMorgan and Wells Fargo. Canada's main stock index also rallied, but Wall Street profits underperformed as oil prices weakened.
White House advisor Larry Kudlow disclosed that Trump would make a series of announcements with regards the re-opening of the US economy in the next day or two, as the health crisis appeared to be slowing down, though several state officials have reiterated the decision to re-start businesses rests with them.
In the past month, US stock markets recovered from their record highs in February by more than 30 percent, buoyed by monetary and fiscal relief and early signs of plateauing in the number of virus cases nationwide.
S&P 500 companies are still off around $4.7 trillion in market cap, however, and market strategists have warned of a moribund earnings season as large-scale shutdown efforts impact heavily on American companies' operations.
The Dow Jones Industrial Average increased by 559 points, or 2.4 percent, to 23.949.75, the S&P 500 climbed 84.41 points, or 3.06 percent, to 2.846.05, and the Nasdaq Composite was up 323.4 points, or 3.94 percent, to 8.515.75.
The advance on Wall Street indicates that investors are not jittery about current results as the corporate earnings season starts but concentrate on the long-term worth of each enterprise's franchise, Tim Ghriskey, chief investment planner at Inverness Counsel in New York, stated.
