Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Global shares, oil rally on vaccine hopes, lockdown easing

share with twitter share with LinkedIn share with facebook
05/18/2020 | 04:23pm EDT
The floor of the New York Stock Exchange (NYSE) stands empty as the building prepares to close indefinitely due to the coronavirus disease (COVID-19) outbreak in New York

By Herbert Lash

A gauge of global equity markets surged almost 3% on Monday and oil rallied to highs last seen in mid-April as data from an early-stage trial for a coronavirus vaccine lifted hopes of a faster recovery from the pandemic-driven economic slump.

Warm weather enticed people in countries across the world to emerge from coronavirus lockdowns as centers of the outbreak from New York to Italy and Spain gradually lift restrictions that have kept millions cooped up for months.

Investors have cheered any positive development by drugmakers' vaccine trials amid fears of a second wave of infections as restrictions are eased.

Drugmaker Moderna Inc said its experimental COVID-19 vaccine showed promising results in a small early-stage trial, and its stock closed up 20.0%.

A workable vaccine that can be mass-produced by year-end or early 2021 would be a "game-changer" for industries whose challenges may not be resolved by the economy's reopening, said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.

Global economic output will take two or three years to recover to pre-pandemic levels, IHS Markit said in a note, projecting worldwide gross domestic product would fall 5.5% in 2020, or three times the contraction of 2009 after the global financial crisis.

Under the best of circumstances, it will be a long road for the U.S. economy to recover, with additional job losses likely through June, Federal Reserve Chairman Jerome Powell said in an interview on Sunday.

MSCI's gauge of stocks around the globe <.MIWD00000PUS> gained 2.90%, its biggest single-day percentage gain since April 6 when it jumped 5.5% after signs the death toll from the coronavirus was slowing in Europe.

The pan-European STOXX 600 index closed up 4.1%, its biggest one-day percentage gain since March 24.

Germany's auto-heavy DAX index surged 5.7% to its highest level in more than two weeks, while France's main CAC 40 index rose 5.2%. The two countries called for the creation of a European Recovery Fund worth 500 billion euros ($544 billion) to help the region quickly exit the crisis.

The deal, described by French President Emmanuel Macron as a major step forward, seeks to break the impasse over joint euro debt and act as a blueprint for a wider European Union agreement. The euro rose on the news.

On Wall Street the benchmark S&P 500 posted its biggest one-day percentage gain in almost six weeks.

On Wall Street, the Dow Jones Industrial Average rose 911.95 points, or 3.85%, to 24,597.37. The S&P 500 gained 90.21 points, or 3.15%, to 2,953.91 and the Nasdaq Composite added 220.27 points, or 2.44%, to 9,234.83.

"The resilience of stock markets relative to the awful economic data that we've been seeing over the past fortnight speaks to an optimism that ... as economies come out of lockdown we can expect to see improvements as we head into the second half of the year," said Michael Hewson, chief market analyst at CMC Markets.

Japan's preliminary GDP data showed that the world's third- biggest economy contracted an annualized 3.4% in the first quarter, slipping into recession for the first time in more than five years.

Hopes of a worldwide economic recovery lifted oil prices, with prices settling 7%-8% higher, supported by output cuts.

"Optimism on the demand side of the oil equation has helped prices climb further, with gasoline demand coming back as governments ease confinement measures," said Rystad Energy senior oil markets analyst Paola Rodriguez Masiu.

U.S. crude added $2.39 to settle at $31.82 a barrel, while Brent, the international benchmark, rose $2.31 to settle at $34.81 a barrel.

The jump in oil prices lifted commodity currencies such as the Norwegian crown and the Canadian dollar against the U.S. dollar.

The dollar index <=USD> fell 0.771%, with the euro up 0.93% to $1.0916. The Japanese yen weakened 0.26% versus the greenback at 107.33 per dollar.

Italian government bond yields fell to their lowest level in over a month on the proposed Franco-German recovery fund.

Benchmark 10-year U.S. Treasury notes fell 26/32 in price to push their yield up to 0.7224%.

Gold retreated from a more-than seven-year high as stocks and oil surged. U.S. gold futures settled 1.3% lower at $1,734.40 an ounce.

Gold traded sideways "because everybody is thinking 'risk-on,' get into equities - as markets across the board are up 3%," said Michael Matousek, head trader at U.S. Global Investors. But the trend "is still to the upside, there's still plenty of reason to buy gold."

(Reporting by Herbert Lash; Editing by Dan Grebler, Leslie Adler and Tom Brown)

Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / CANADIAN DOLLAR (AUD/CAD) 0.02% 0.94359 Delayed Quote.3.83%
BEST INC. -6.67% 4.48 Delayed Quote.-19.42%
BRITISH POUND / CANADIAN DOLLAR (GBP/CAD) 0.02% 1.71627 Delayed Quote.-0.61%
BYD COMPANY LIMITED 3.62% 77.3 End-of-day quote.98.97%
CAC 40 1.01% 4970.48 Real-time Quote.-16.85%
CANADIAN DOLLAR / JAPANESE YEN (CAD/JPY) 0.13% 78.6 Delayed Quote.-5.63%
CANADIAN DOLLAR / SWISS FRANC (CAD/CHF) 0.08% 0.69153 Delayed Quote.-7.05%
CMC MARKETS PLC -0.91% 328 Delayed Quote.123.74%
DAX 1.16% 12633.71 Delayed Quote.-4.64%
DJ INDUSTRIAL 1.44% 26075.3 Delayed Quote.-9.92%
EURO / US DOLLAR (EUR/USD) 0.01% 1.1296 Delayed Quote.0.67%
EURO 50 SELECT 4.75% DECREMENT (SHLE, UHD) 1.20% 717.985569 Real-time Quote.-15.72%
EUROPE SELECT GREEN 50 5% DECREMENT (DIV, UHD) 0.78% 1513.328608 Real-time Quote.-8.63%
FRANCE SELECT 70 EQUAL WT 5% DECREMENT (DIV, UHD) 1.30% 1294.110855 Real-time Quote.-17.64%
GOLD 0.00% 1798.3 Delayed Quote.18.89%
IHS MARKIT LTD. -0.13% 75.64 Delayed Quote.0.38%
LONDON BRENT OIL 0.00% 42.875351 Delayed Quote.-35.88%
MODERNA, INC. -3.63% 62.61 Delayed Quote.220.09%
NASDAQ 100 0.76% 10836.333146 Delayed Quote.24.08%
NASDAQ COMP. 0.66% 10617.443394 Delayed Quote.18.33%
NEW ZEALAND DOLLAR / CANADIAN DOLLAR (NZD/CAD) 0.04% 0.89331 Delayed Quote.2.21%
S&P 500 1.05% 3185.04 Delayed Quote.-1.42%
STOXX EUROPE 600 0.88% 366.83 Delayed Quote.-11.79%
STOXX EUROPE 600 NR 0.88% 803.82 Delayed Quote.-10.43%
THE GLOBAL LTD. -3.30% 205 End-of-day quote.-56.48%
WORLD CO., LTD. -5.40% 1420 End-of-day quote.-47.23%
WTI 2.42% 40.565 Delayed Quote.-35.40%
share with twitter share with LinkedIn share with facebook
Latest news "Economy & Forex"
11:28aArizona adult intensive care unit (icu) beds in use by all patients at 89% as of saturday, unchanged from the previous day - state health dept
11:28aArizona covid-19 current hospitalizations fall to 3,432 as of saturday, down from friday's record high of 3,485 - state health dept
11:26aFlorida sets one-day record with over 15,000 new coronavirus cases, bigger increase than most countries
11:25aBLM BUREAU OF LAND MANAGEMENT : to begin Swasey Herd Management Area wild horse gather
11:22aArizona coronavirus cases rise by 2,537 to 122,467 total on sunday, first increase below 3,000 new cases a day in over a week – reuters tally
11:08aFlorida coronavirus cases rise by 15,300 on sunday to 269,811 total, biggest daily increase since pandemic started - state health dept
11:08aFlorida reports over 15,000 COVID-19 cases in single-day record
10:55aWeWork expects to have positive cash flow in 2021, Financial Times reports
10:46aAs COVID-19 cases surge in Florida, anti-mask activists hold protests, Disney World reopens
Latest news "Economy & Forex"