Sun, 25 Jul 2021

Investors weigh into U.S. stocks, all major indices jump

Lola Evans
21 Jul 2021, 06:31 GMT+10

NEW YORK, New York - The Covid-19 surge, particularly the Delta variant, was blamed for Monday's plunge in global stocks, the biggest one-day dive in 9 months.

So analysts were finding it difficult to explain why stocks roared ahead on Tuesday.

"The narrative from yesterday that bled through the weekend was a little bit of a risk-off scenario around the increasing COVID cases," Charlie Ripley, senior investment strategist for Allianz Investment Management told Reuters Thomson Monday.

"I don't think it's so much that investors are worried about the cases themselves. It's government officials and their reaction, where we could get into a situation where restrictive measures get put in place again, that dampens growth over the long run."

The contrast could be seen with the UK celebrating freedom day, and the dispensing of all restrictions while recording more than 50,000 cases a day, while in Australia where the country is now registering around 100 cases a day, two states, and the most populated parts of a third are now in lockdown.

Nonetheless, investors were back feverishly buying stocks on Tuesday.

The Dow Jones industrials accelerated 549.95 points or 1.62 percent to 34,511.99.

The Standard and Poor's 500 added 64.57 points or 1.52 percent to 4,323.06.

The Nasdaq Composite advanced 223.89 points or 1.57 percent to 14,498.88.

The U.S. dollar retained its strength on Tuesday, but with the resurgence of stocks, it made little headway.

The euro last changed hands approaching the New York close at 1.1780. This after hitting a low of 1.1755 earlier in the day.

The British pound slipped further to 1.3626. The Japanese yen eased to 109.87. The Swiss franc softened to 0.9213.

The Canadian dollar edged higher to 1.2682. The Australian dollar inched up to 0.7331 from levels of 0.7315 reached in Asia. The New Zealand dollar was slightly firmer at 0.6919.

Overseas, in Germany, the Dax index rose 0.55 percent. The Paris, France-based CAC 40 climbed 0.81 percent. In London, the FTSE 100 advanced 0.54 percent.

On Asian markets, the Nikkei 225 in Tokyo was off 264.58 points or 0.96 percent at 27,388.16.

The Australian All Ordinaries shed 33.90 points or 0.45 percent to 7,525.80.

China's Shanghai Composite fared best, losing just 2.33 points or 0.07 percent to 3,536.79.

In Hong Kong, the Hang Seng dispensed with 264.58 points or 0.96 percent to 27,388.16.

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