Global Stocks Jump on Easing Coronavirus Crisis
World stock markets surged Tuesday on the back of an easing in both coronavirus lockdowns and China-U.S. tensions, dealers said.
Investors also tracked violent anti-racism protests gripping some of the United States' biggest cities after the killing of a black man by a police officer.
In Europe, Frankfurt was the star performer with a near 4.0-percent gain in afternoon deals, as German investors played catch-up after a long holiday weekend and eyed hopes of a new COVID-19 domestic stimulus package.
Paris equities were up 2.1 percent, even after the French government said the economy is expected to shrink 11 percent this year, while London gained one percent.
The European single currency forged another two-month peak at $1.1171.
Oil marched higher on hopes of recovering demand, while key producers including Saudi Arabia and Russia appear ready to decide on whether or not to continue their massive output cuts that have been crucial to supporting the virus-plagued market.
- 'Decent gains' -
"Stock markets in Europe are showing decent gains as there is continued optimism in relation to the reopening of economies," said analyst David Madden at trading firm CMC Markets UK.
"Governments have been taking steps to loosen their lockdown restrictions, so there is a growing feeling that things are slowly going back to normal."
German ministers meet Tuesday to thrash out an economic stimulus package to speed recovery from the coronavirus shutdown, with the vital auto industry and possible subsidies for it a key sticking point.
Lufthansa shares meanwhile soared 3.9 percent to 9.5 euros after the airline's supervisory board approved a nine-billion-euro ($10-billion) bailout from the German government.
Shareholders however still have to rubber-stamp the deal that would hand Berlin a 20-percent stake, at a time when the coronavirus pandemic has devastated global air travel.
Traders are still tracking China-US tensions -- and anti-racism protests in several large American cities.
"The absence of a serious trade rift between the US and China is helping sentiment too," added Madden.
"Dealers on this side of the Atlantic have watched in horror at the scenes of rioting and looting in the U.S.
"It has not impacted sentiment in this part of the world, but it might influence the U.S. session when trading gets underway later."
U.S. President Donald Trump's decision not to impose strict sanctions on Beijing over its Hong Kong security law allowed investors to get June off to a healthy start, while a slowdown in virus infections and deaths globally continues to keep the mood positive.
Europe has meanwhile pressed ahead with a further loosening of measures, with schools, pools, pubs and tourist sites reopening -- despite fears of a second wave of infections -- providing hope that shattered economies can begin to rebuild.
- Key figures around 1145 GMT -
London - FTSE 100: UP 1.0 percent at 6,226.81 points
Frankfurt - DAX 30: UP 3.9 percent at 9,976.10 points
Paris - CAC 40: UP 2.1 percent at 4,862.83
Milan - FTSE MIB: UP 2.3 percent at 18,943.30
Madrid - IBEX 35: UP 2.5 percent at 7,401.60
EURO STOXX 50: UP 2.7 percent at 3,159.62
Tokyo - Nikkei 225: UP 1.2 percent at 22,325.61 (close)
Hong Kong - Hang Seng: UP 1.1 percent at 23,995.94 (close)
Shanghai - Composite: UP 0.2 percent at 2,921.40 (close)
New York - Dow: UP 0.4 percent at 25,475.02 (close Monday)
Brent North Sea crude: UP 2.6 percent at $39.33 per barrel
West Texas Intermediate: UP 2.5 percent at $36.34 per barrel
Euro/dollar: UP at $1.1171 from $1.1136 at 2100 GMT
Dollar/yen: UP at 107.78 yen from 107.59
Pound/dollar: UP at $1.2549 from $1.2492
Euro/pound: DOWN at 89.01 pence from 89.15 pence
Source: Agence France Presse
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