Thursday 2 July 2020

Markets rise on economic rebound

Markets were mostly higher on Wednesday.

The S&P 500 rose 0.5 percent and the STOXX Europe 600 rose 0.2 percent.

Earlier in Asia, the Nikkei 225 fell 0.8 percent but the Shanghai Composite rose 1.4 percent.

The Institute of Supply Management said its US manufacturing index rose to 52.6 in June from 43.1 in May.

Manufacturing purchasing managers indices elsewhere also showed improvements.

However, dampening sentiment is the continuing rise in COVID-19 infections.

Reuters reported that the number of infections in the US rose by over 48,000 on Wednesday, the biggest daily increase since the pandemic started. California rolled back the reopening of its economy on Wednesday, banning indoor restaurant dining in much of the state, closing bars and stepping up enforcement of social distancing and other measures.

Jim Baird, chief investment officer for Plante Moran Financial Advisors, said that while the “rebound clearly underway creates reason for hope; the ongoing health risk provides reason for caution”.

No comments:

Post a Comment