Pollen night … records on Wall Street and Europe for an 8-month summit and oil shining

0
20


Global markets recorded record highs, Monday, stocks on Wall Street reached pre-pandemic levels, and European shares rose to an 8-month high.

The two indices Standard & Poor’s 500 and the Dow Jones on Wall Street hit record highs at the close on Monday, with increasing hopes for the eradication of Covid-19 disease following news of another promising vaccine, but a jump in HIV infections and a new wave of closures threatening a recovery from the recession sparked by the pandemic.

The three main indices of US stocks rose.

And at its new record closing level, the Dow Jones index of big caps is the last of the three indexes to regain levels it reached in February, before the closings pushed the markets to a sharp decline.

The Russell 2000 index also recorded its highest close on record.

Value stocks, cyclical stocks and small cap stocks performed better than the rest of the sectors.

The Dow Jones Industrial Average ended the trading session up 470.63 points, or 1.60%, to 29,950.44 points, while the Standard & Poor’s 500 Index rose 41.76 points, or 1.16%, to close at 3,626.91 points.

The Nasdaq Composite Index closed up 94.84 points, or 0.8%, to 11,924.13 points.

European stocks

The European stock market closed at the highest level in more than 8 months Monday after positive data from Moderna regarding a vaccine to prevent Covid-19 disease and encouraging data from China, which boosted investor confidence in a faster pace of economic recovery.

“The more companies that can develop a vaccine candidate to show efficacy, the more optimistic the investors will be about the ability to see a way out of this pandemic and somehow return to normal economic activity,” said Michael Hewson, chief market analyst at CMC Markets.

The pan-European STOXX 600 index ended the trading session up 1.3% supported by strong gains in oil companies’ shares following a 4% jump in crude prices.

The index of European banks’ shares rose 3.1%, driven by a 16% jump in the shares of Spanish bank BBVA after the (BNC) financial services group said it would buy its activities in the United States for $ 11.6 billion in cash.

The benchmark STOXX 600 index is up about 40% from its lows in March and is heading towards recording the best monthly performance in nearly 3 decades.

Earlier, the market was supported by data showing that factory production in China rose faster than expected in October and also a jump in retail sales.

Oil prices

Oil prices rose more than 2% Monday after hitting higher levels earlier in the session when Moderna said its experimental vaccine showed 94.5% effectiveness in preventing COVID-19 infection.

Brent crude for January delivery ended the trading session up $ 1.04, or 2.43%, to settle at $ 43.82 a barrel, after it earlier jumped more than 4%.

US West Texas Intermediate crude futures for December delivery rose $ 1.21, or 3%, to settle at $ 41.34 a barrel.

Oil prices were also supported by data showing that refineries in China processed record daily levels of crude in October.

Both US crude and Brent crude recorded gains of more than 8% last week, supported by hopes of an anti-Corona virus vaccine and expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, will maintain production cuts next year to support prices.

LEAVE A REPLY

Please enter your comment!
Please enter your name here