Market Summary: The long and the short of it.
Asia
The Peoples Bank of China expanded its massive liquidity stimulus on Tuesday with another enormous 400 Billion Yuan in support of Chinese markets. The Federal Reserve in the U.S. also supported the U.S. markets with its overnight “repo”, which saw a another massive $64.45 Billion in liquidity injected. Stocks worldwide followed and shrugged off global pandemic fears, despite the concern.
All the major Asian markets closed higher on Tuesday with Chinese and Hong Kong shares leading the way. The Chinese Shanghai Composite was up +1.55% while Hong Kong’s Hang Seng posted a 0.55% gain. The Japanese Nikkei 225 was closed on Tuesday.
Europe
European markets mirrored the enthusiasm in Asia and extended the rally into the trading session. All major European markets closed sharply higher today with stocks in Germany performing the best. The DAX surged +1.81% while the French CAC 40 climbed +1.76% and London’s FTSE 100 finished+1.55%.
Americas
North and South American markets finished broadly higher on Tuesday, shares in Mexico led the region. The IPC rose +2.13% while U.S.’s S&P 500 posted a+1.50% gain and the Brazilian Bovespa joined in the enthusiasm with a +0.81% return for investors.
U.S. Treasuries also displayed some risk appetite, 2- and 10-year yields closed at 1.41% and 1.6%, respectively. Gold fell more than -1% to $1,554 an ounce while Silver was up +0.34% to 17.62 an ounce. Bitcoin was down a little and stayed flat at $9,237 while the fear Index (VIX) dropped 10% to just over 16. Interestingly, Ripple’s XRP token looks to have shaken off its apathy with some massive buying volume entering the frey and is up 10.83% in the last 24 hours.
Despite the exuberance in stock markets worldwide, Crude Oil (WTI) extended its decline with another 1% decline to $49.6 a barrel, a fresh 52-week low.