Tuesday 23 June 2020

Nasdaq hits record high as V-shaped recovery seen

Markets were mixed on Monday.

In the US, the S&P 500 rose 0.7 percent while the Nasdaq Composite rose 1.1 percent to a record high.

Elsewhere, however, the STOXX Europe 600 fell 0.8 percent and the Nikkei 225 fell 0.2 percent.

“There remains a degree of concern that a rise in infection rates ... could well derail the prospects for a recovery as economies continue to try and re-open,” said Michael Hewson, chief market analyst at CMC Markets.

Indeed, while hopes for a sustained re-opening of economies and recovery have been boosted by anticipation for a vaccine for COVID-19, recent research from China showed that levels of an antibody found in recovered patients fell sharply in 2-3 months after infection for both symptomatic and asymptomatic patients, raising questions about the length of any immunity.

Still, many analysts are optimistic.

“Virus numbers are picking up,” said Bruce Bittles, chief investment strategist at Robert W Baird & Co. “But it’s not to the extent that we’re looking at a shutdown again.”

“History is not on the side of investors expecting anything less than a V-shape,” wrote analysts at Jefferies.

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