Markets rise as COVID-19 seen “tolerable”

Markets rose on Tuesday.

The S&P 500 rose 0.4 percent, the STOXX Europe 600 jumped 1.3 percent and the Nikkei 225 rose 0.5 percent.

IHS Markit’s preliminary composite PMI for the US rose to 46.8 in June from 37 in May while the composite PMI for the eurozone rose to 47.5 from 31.9.

Dr Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said in testimony before Congress on Tuesday that parts of the US are beginning to see a “disturbing surge” in COVID-19 infections.

However, Tony Roth, Wilmington Trust’s chief investment officer, said that recent gains in the market show “guarded optimism around the COVID situation becoming more tolerable, or livable”.