The world stock markets witnessed a two-weeks record high after Trump left hospital. It appears as if the President is fast recovering from the coronavirus. News of a second stimulus package being approved is also pulling the stock market sentiment out of the recent dump.
Reports suggest a slow start with FTSE (London) in Europe. While the FTSE has been dipping, there hasn’t been a lot of traction from FTMIB (Italy), GDAXI (Germany), or FCHI (France) either. Although, Germany’s industrial sector has seen remarkable growth recently.
After reports came in that Trump left hospital, the Asia market and the Wall Street breathed their sighs of relief. Donald Trump has been taken into a military hospital after testing positive for the coronavirus. The IS stock market saw an immediate impact after the news since it worries investors of possible political unrest.
After Trump’s coronavirus news came in, the dollar, gold, and bonds saw an immediate impact. Oil and the Wall Street futures were losing their momentum overnight.
A market analyst from Societe Generale says that the world stock markets are missing the oomph factor. He further said that while it’s true that Trump left hospital, the stock market has not seen any change that’s too meaningful to it.
On Monday, Donald Trump left hospital for the White House and claimed that he felt better. However, a senior doctor from the facility said that the President will not be considered fully recovered until a few more days.
MIAP00000PUS, one of the biggest shares of MSCI in Asia-Pacific saw an increase of 0.7 percent, as it experienced a two-week high. HSI (Hongkong) increased by 0.8 percent. Meanwhile, Nikkei (Japan) rose by 0.5 percent.
The stock market in China was closed due to a public holiday.
As for the US stock market, investors are desperately hoping that the lawmakers approve the second stimulus package soon. On Monday, Steve Mnuchin and Speaker Pelosi stated that negotiations have been continuing via phone calls. Big the teams further remarked that negotiations will continue on Tuesday as well.
A stock market analyst from J.P. Morgan Asset Management said that the US stock market and the world stock markets, in general, would welcome the news of a second stimulus package.
Trump Left Hospital: Now What?
Strategists claim that the US yields sell-off is just a short-term relief from Trump leaving the hospital. It has removed anxieties over what will happen if the president were to not participate in the upcoming elections.
In the world stock markets, the greenback has been feeling the pressure from major currencies, except for Yen.
The US dollar stands at 105.62 yen.