Markets rose on Tuesday.
The S&P 500 rose 0.9 percent and the STOXX Europe 600 jumped 2.2 percent.
Oil prices surged. West Texas Intermediate crude jumped 20.5 percent and Brent rose 13.9 percent.
“The market is still vulnerable but now one thing is clear, the demand bottom is behind us, and this is manifesting in oil prices which are on the rise,” wrote Magnus Nysveen, head of analysis at Rystad Energy.
Chicago Fed President Charles Evans said on Tuesday that the US economy may return to growth in the second half of the year as businesses open up again after the lockdowns to combat the COVID-19 pandemic.
Evans added that “I can’t imagine that anybody is expecting the Fed to raise the interest rates over any relevant time horizon”.
Indeed, St Louis Fed President James Bullard said that he thought the Fed’s benchmark interest rate would stay near zero for “years”, not “months”.
Bullard said that the US unemployment rate could exceed 20 percent in the second quarter, the third quarter will be a “transition” period and “by the time we get to the fourth quarter I would hope that you could have an end to the crisis and put this behind us”.
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