rain.png
Thursday May 28th, 2020 3:18AM

Stocks rally from Hong Kong to Wall Street on reopening hope

By The Associated Press
Related Articles
  Contact Editor

Stocks rallied worldwide on Tuesday as more countries relaxed restrictions on businesses, raising hopes for a recovery from the historic plunge that is sweeping the global economy.

The S&P 500 rose 1.8% in afternoon trading following similar gains in Paris, London and Hong Kong. Crude oil also continued its mini-rally after falling to record lows last month.

In California, some retail businesses could begin serving customers again as early as Friday, under some restrictions. Many European countries have also begun relaxing strict orders meant to slow the spread of the coronavirus outbreak, while waiting to see if it leads to a resurgence in infections. In Asia, the first pitches of the South Korean baseball season thwacked into catchers’ mitts, albeit in stadiums with no fans in attendance.

“It is hard to be a raging pessimist when lockdowns are lifting in the next few weeks,” Stephen Innes of AxiCorp said in a commentary.

The Dow Jones Industrial Average was up 359 points, or 1.5%, at 24,113, as of 2:06 p.m. Eastern time. The Nasdaq was up 2.1%.

The stock market has been rallying since late March, as investors look beyond the devastation that’s currently ravaging the global economy. They’re focusing instead on the prospects for a resumption of growth later in the year, as well as on the massive support for markets provided by the Federal Reserve. Many analysts are skeptical of the stock market’s rally, saying it’s overdone given all the uncertainty about how long the recession will last, but the S&P 500 has nevertheless more than halved its losses from its sell-off earlier in the year.

A report released Tuesday morning showed that the U.S. services industry shrank for the first time in a decade, but it caused barely a ripple in the stock or bond market. It wasn’t quite as terrible as economists had forecast.

”What we should be watching for is not that things are good; things are not going to be good,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “We should be watching for signs that things are less bad.”

”Just getting people back to work and businesses open again can improve attitudes and confidence,” he said.

Hopes that the reopening of economies will eventually lead to a pickup in demand have also very recently helped oil prices pull off the floor. A barrel of U.S. oil to be delivered in June rose 19.7% to $24.39 Tuesday, up from a low point of $6.50 set late last month. It’s still well below the roughly $60 that it cost at the start of the year, after plunging on worries that the collapse in oil demand would lead to topped-out storage tanks.

Brent crude, the standard for international pricing, gained 12.9% to $30.66 per barrel.

“The feeling on the floor is that energy is in a better spot, and while it’s not brilliant,“ the gulf between oil supplies and demand “is starting to shift in a more positive direction,” Chris Weston of Pepperstone said in a report.

Technology stocks also continued their strong run, and Apple and Microsoft both rose at least 2%. That’s big for the S&P 500 because those two companies alone account for 11% of the entire index’s market value. Tech stocks in the S&P 500 have erased all their losses for 2020 so far, after earlier being down as much as 23%.

The market’s gains were widespread, though. And small stocks in the Russell 2000 index were doing even better than their larger rivals, a sign of rising expectations for coming economic growth. The Russell 2000 was up 2.1%.

In Europe, Germany’s DAX rose 2.5%, the CAC 40 in Paris gained 2.4% and the FTSE 100 in London rose 1.7%.

Hong Kong’s Hang Seng added 1.1% as the government said it would relax some social distancing measures, allowing certain businesses such as gyms, cinemas and beauty salons to reopen and doubling the number of individuals allowed at public gatherings to a maximum of eight. Markets in Tokyo, Shanghai and Seoul were closed for holidays.

In another sign of a bit less pessimism in the market, the yield on the 10-year Treasury note ticked up to 0.65% from 0.63% late Monday. Treasury yields tend to rise when investors are upgrading their expectations for the economy and inflation. But it’s still well below the 1.90% it yielded at the start of the year.

___

AP Business Writer Elaine Kurtenbach contributed.

  • Associated Categories: Local/State News, Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Utilities
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Stocks rally from Hong Kong to Wall Street on reopening hope
Stocks are rallying worldwide on Tuesday as more countries relaxed restrictions on businesses, raising hopes for a recovery from the historic plunge sweeping the global economy
12:32PM ( 7 minutes ago )
The Latest: Britain’s virus death toll highest in Europe
Britain’s official coronavirus death total has passed Italy’s number to become the highest in Europe
12:27PM ( 13 minutes ago )
Pelosi pushes new virus aid deal as GOP resists big spending
House Speaker Nancy Pelosi is moving forward on the next coronavirus aid measure
12:23PM ( 17 minutes ago )
Associated Press (AP)
Libyan PM calls for renewed UN talks amid increased tensions
The head of Libya’s internationally recognized government has called for a renewal of U.N.-brokered talks to end divisions in the oil-rich country
12:10PM ( 30 minutes ago )
Where's my check? Answers to common relief payment questions
The US government has distributed about 130 million economic impact payments to taxpayers in less than 30 days
12:07PM ( 33 minutes ago )
The Latest: Spain wants to extend state of emergency 2 weeks
Spain’s Socialist-led government will ask parliament in a debate scheduled for Wednesday to extend the state of emergency another two weeks through May 24
12:02PM ( 38 minutes ago )
AP Business
Stocks’ reopening rally stretches from Hong Kong to New York
Stocks are rallying worldwide on Tuesday as more countries relaxed restrictions on businesses, raising hopes for a recovery from the historic plunge sweeping the global economy
10:44AM ( 1 hour ago )
Fiat Chrysler swings to loss as virus hits output, demand
Fiat Chrysler Automobiles has reported a first-quarter net loss of 1.7 billion euros ($1.84 billion) due to a steep decline in car sales during the coronavirus pandemic
8:12AM ( 4 hours ago )
NBC News chief Andy Lack out in corporate restructuring
NBC News chief Andy Lack is out as part of a corporate restructuring that NBC Universal CEO Jeff Shell announced on Monday
8:42PM ( 15 hours ago )
AP Business - Corporate News
US service sector shrinks for first time since recession
The U.S. service sector shrank for the first time in a decade last month as the pandemic forced shutdowns and layoffs nationwide
11:16AM ( 1 hour ago )
A push for normalcy; industries, nations test the waters
Restaurant have begun to welcome diners, manufacturers are announcing plant reopenings and markets are moving higher all on hopes that the worst of the pandemic is in the past
11:09AM ( 1 hour ago )
US services sector falls into contraction, first in a decade
The U.S. service sector plunged into contraction territory for the first time in a decade in April as the shutdowns and layoffs that occurred last month because of the coronavirus took a toll
10:51AM ( 1 hour ago )
AP Business - Economy
World shares climb on oil price gain, Wall Street rebound
Shares have opened higher in Europe, tracking gains in Asia and on Wall Street as oil prices jumped
5:35AM ( 7 hours ago )
Asian shares advance following rebound on Wall Street
Shares have stretched higher in Asia, lifted by higher oil prices and a rebound on Wall Street
3:11AM ( 9 hours ago )
Senate reopens despite risks as House preps more virus aid
The Senate has reopened in a Capitol largely shuttered by the coronavirus, but prospects for quick action on a new aid package are uncertain
8:10PM ( 16 hours ago )
AP Business - Financial Markets
Another 1,700 virus deaths reported in NY nursing homes
New York state is now reporting more than 1,700 previously undisclosed deaths at nursing homes and adult care facilities as the state faces scrutiny over how it’s protected vulnerable residents during the coronavirus pandemic
9:53AM ( 2 hours ago )
At senior home, staff stays put 24-7 to stop virus spread
Like other places that house and care for older adults, the Park Springs community near Atlanta is working to prevent a widespread outbreak of the coronavirus
9:42AM ( 2 hours ago )
Italy lets millions back to work, US restrictions easing up
Millions of Italians have been allowed back to work as Europe’s longest coronavirus lockdown started easing up
10:59PM ( 13 hours ago )
AP Business - Industries
Saudi Arabia eyes more moves in time of pandemic, oil woes
Saudi Arabia has begun taking modest steps to improve its human rights record as it tries to navigate the coronavirus pandemic and the fallout from plunging oil prices that have rankled the United States
8:04AM ( 3 days ago )
Stocks slide as Amazon, other companies detail virus fallout
Stocks ended lower on Wall Street Friday, giving up their gains for the week, after Amazon and other big companies laid out how the coronavirus pandemic is hitting their bottom lines
4:49PM ( 3 days ago )
Wall Street pulls back after companies detail virus fallout
Stocks are falling on Wall Street after Amazon and other big companies laid out how the coronavirus pandemic is hitting their bottom lines
3:44PM ( 3 days ago )
AP Business - Utilities
The Latest: Britain’s virus death toll highest in Europe
Britain’s official coronavirus death total has passed Italy’s number to become the highest in Europe
12:27PM ( 13 minutes ago )
Pelosi pushes new virus aid deal as GOP resists big spending
House Speaker Nancy Pelosi is moving forward on the next coronavirus aid measure
12:23PM ( 18 minutes ago )
Ad for Georgia Senate hopeful touts John Lewis' backing
Civil rights pioneer and Georgia congressman John Lewis’ endorsement of Democratic Senate hopeful Jon Ossoff is the focus of a new television ad from Ossoff’s campaign
12:21PM ( 20 minutes ago )
Mfume rejoins House, in vacant seat of late Elijah Cummings
Maryland Democrat Kweisi Mfume has been sworn in to the U.S. House for a second time
12:19PM ( 22 minutes ago )
In clamor to reopen, many black people feel overlooked
Many African Americans watching protests calling for easing restrictions meant to slow the spread of the new coronavirus see them as one more example of how their health and their rights just don’t seem to matter
12:14PM ( 26 minutes ago )