Share prices buoyed by lockdown easing and hopes of Covid vaccine - MW

Share prices rose sharply on the global stock market amid easing restrictions, announcing a France-Germany bailout for Europe and heightened hope for vaccines for Covid-19 .

In one of the strongest trading days since the onset of the crisis in March, the FTSE 100, which measures the market performance of major City City companies, gained 248 points and ended the day. at 6,048.

Travel companies and airlines were among the companies with the largest increases, with cruise ship Carnival up nearly 15%, British Airways owners up 11% and easyJet up 10%. Mining values ​​have also rebounded in hopes of increased global demand.

Dow Jones' industrial average on Wall Street opened strongly after Moderna, a biotech company based in Boston, Massachusetts, announced encouraging results when it first tested a new vaccine.

Oil prices also rose with optimism that the gradual opening of European countries and American nations marked a turning point in a crisis that has seen stock prices fall over the past three months. . Despite an increase of more than 4% on Monday, the FTSE 100 is still down almost 20% compared to the previous Covid.

Even bigger profits were posted on the stock exchanges in other European countries following the announcement that Angela Merkel and Emmanuel Macron agreed to create a European stimulus fund worth 500 billion euros (441 billion), according to the European Commission will then be able to borrow money on the financial markets. The German Dax index closed at more than 5.7% while the French ACC closed at 5.2%.

Edward Moya of Oanda said: "The start of the trading week was supposed to be a little optimistic about the global economic recovery, but no one expected this second start.

Risk appetite intensifies after tests of Moderna's experimental vaccines have shown promising warning signs to induce an immune system response that could thwart Covid-19. Global stocks are skyrocketing in the hope that vaccines combined with major economies will continue to reopen and that the Fed will continue to promise more stimulus if necessary.

The rise of the stock market despite warnings from the head of the International Monetary Fund, Kristalina Georgieva, that a full recovery is not possible for the global economy by 2021.

In April, the IMF said it expected to cut operations by 3% this year, followed by a 5.8% increase in 2021, but gloomy economic news since then has made Georgieva less optimistic.

The head of the IMF told Reuters that the data was worse than expected, adding: This clearly means that it will take us longer to fully recover from this crisis.

With the financial market becoming scary the week before rising trade tensions between the United States and China, Georgieva also warned of countries that use protectionism.

We need to keep the flow of trade open, especially for medical, food and long-term supplies in order to find a way to overcome what is going on with this crisis, she said. . We want to continue to build this more prosperous future for all by overcoming the scars that may have resulted from this crisis.