US stocks rise with hopes of recovery … and the “European” highest in a month


US stocks rose yesterday, supported by hopes for a recovery led by China from the economic downturn caused by the outbreak of the Corona virus, while investors were indifferent to a local increase in the number of new cases of Covid-19 over the weekend, which spanned for several days.
According to “Reuters”, the Dow Jones industrial average rose 168.72 points, or 0.65 percent, to 25,996.08 points, and the S&P 500 index rose 25.28 points, or 0.81 percent, to 3,155.29 points, and the Nasdaq Composite Index increased 152.75, or 1.50 Percent, to 10360.38 points, a new peak.
On the other hand, the European stock market closed yesterday at its highest level in nearly a month, supported by positive economic data and a jump in shares in China, due to hopes that the second largest economy in the world will recover from a recession triggered by the outbreak of the Corona virus. The pan-European STOXX 600 ended the trading session, up 1.6 percent on a broad base of gains, led by a 6.6 percent jump in shares of HSBC, which focuses on Asia, leading the European banking sector index to rise by 4 percent.
Other stocks exposed to China, including automakers, energy companies, luxury goods manufacturers and industrial companies, posted strong gains.
On major European stock exchanges, the FTSE British stock index and Spain’s IBEX index closed 2 percent higher while the German DAX added 1.6 percent.
Sentiment was bolstered by data showing a record recovery in retail sales in the euro zone in May, following a historic downturn triggered by the pandemic in the past two months, and other data showing unexpected growth in the US services sector last month.
In Asia, Japanese stocks rose yesterday, as indicators of an economic recovery in China supported shipping companies and steel production, while the possibility of adopting more support policies to continue recovering from concern about the escalation of coronavirus infections in some US states.
And the Nikkei index rose 1.83 percent to 22714.44 points, its highest closing level since the tenth of June, and the broader Topix index advanced 1.06 percent to 1577.15 points.
Shares of brokerage firms jumped 3.3 percent, shipping companies and steelmakers, which are heavily affected by demand in China, 3.3 and 2.7 percent, respectively.
Nissan Motors rose 5.2 percent after its automaker said its sales in China, the world’s largest auto market, rose last month.


Please enter your comment!
Please enter your name here