S&P 500 to break the 3,000 point barrier, Europe’s travel industry sinks

S&P 500 to break the 3,000 point barrier, Europe’s travel industry sinks

S&P 500 to break the 3,000 point barrier, Europe’s travel industry sinks

Global shares marched ahead on Tuesday, and the commodity markets witnessed a rise, as well as the investors, were more focused on the stimulus in China and a re-opening of the world economy rather than the Sino-U.S. tensions. Japan’s Nikkei N225 and Britain’s FTSE led their regions with a gain of 2.2% and 1.2%, respectively, while the S&P 500 was all prepared to break the 3,000 points barrier for the first time since early March. Europe profited by about a 7% rise in its travel and leisure stocks SXTP witnessed a 35% gain from holiday firm TUIT.L and a 20% rise in the British Airways owner IAG. Spain stated that their quarantine-free tourism would be resuming next month as Germany edged towards a 9-billion-euro bailout of the Lufthansa airlines.

Spanish, Italian, and several other southern eurozone government bonds also have increased hopes, and a weaker dollar significantly helped the pound, the euro, and several other holiday-hotspot currencies like Mexico’s peso and Turkey’s Lira. These helped to offset the war of words over trade between Washington and Beijing, the novel coronavirus, and China’s proposals for imposing stricter security laws in Hong Kong. The U.S.-China tensions are continuing to stay in the background, but equity investors across the world now appear to be much more interested in the prospect of re-opening the global economy. Additionally, Germany wants to end its travel warning for tourist trips to 31 European countries from the 15th of June if the current situation allows.

Bond investors suspect that the economies will still need huge amounts of central bank aid long after they re-open, and that is keeping the yields low even when the governments borrow much more. The rise in the U.S. yields might have weighed on the dollar, but with rates near or less than zero, some major currencies have been holding tight ranges. Against a basket of currencies, the U.S dollar lost nearly 0.5% and closed at 99.160 but was still sandwiched between the support at 99.001 and resistance at around 100.560. In commodity markets, gold tumbled down by about 0.3% to 1,723 USD an ounce.