A fresh burst of demand for US government bonds pushed yields on 10- and 30-year debt down this week to the lowest level since states began loosening lockdown restrictions, as a rise in deaths linked to the pandemic raised concerns over reopening the economy too soon.
Equity markets climbed after a strong US jobs report fuelled hopes that the world’s largest economy is on track for a recovery from the damage caused by the coronavirus pandemic despite a recent rollback in the easing of lockdowns.
Wall Street stocks recorded the best quarter in more than two decades amid a broad rally in global financial markets ignited by a barrage of central bank stimulus and hopes of a forceful economic recovery.
Stock markets in the US and Europe finished higher on Monday as investors bought industrial and other cyclical stocks, on the hope that rising US coronavirus cases will be contained and the economy quickly rebound.
BP has agreed to sell its petrochemicals business to Ineos for $5bn, as chief executive Bernard Looney accelerates his efforts to sharpen the focus and strengthen the finances of the global energy company.
US stocks dropped on Friday after Texas and Florida rolled back reopening measures, raising fresh fears that the coronavirus would derail an economic recovery. Banks were among Wall Street’s sharpest fallers after the US Federal Reserve told them to limit shareholder payouts.
Financials led US markets to their third positive close in four days on Thursday as bank stocks were boosted by the easing of post-2008 crisis rules that will make it easier to invest in venture capital funds and free up capital set aside for derivatives.
Global stocks resumed their march higher on Tuesday as investors took heart that better-than-expected surveys on business sentiment indicated companies were emerging from the worst of the global lockdowns.
Banks have rushed to borrow a record €1.3tn from the European Central Bank at deeply negative interest rates, in the latest monetary policy drive to boost liquidity in the eurozone’s coronavirus-stricken economy.
Stock markets in the US and Europe struggled to make headway on Wednesday, with investors divided whether to take heart from signs of an economic recovery or fear the impact of rising Covid-19 infections.