The US stock indices extended their advanced for the fourth session over five, recording gains past 3% on Monday, amid healthcare stocks
rallied on hopes that a vaccine could curtail the spread of the coronavirus and signal the end of the containment measures that have
catastrophic implications for the global economy.
Technology stocks were among the best performers with solid gains in Microsoft (+7%),
Intel (+5.96%) and Apple (+2.85%) shares. Boeing lost another 6% as US Air Forces announced additional deficiencies in the aerial fuel
system of a plane built by the company.
The Chinese manufacturing PMI improved to 52 in March, confirming that the activity picked up
following weeks of drastic slowdown due to the coronavirus outbreak. That has been a relief for investors globally.
WTI crude
recovered 5% to $22 a barrel, but the market is flooded with oil that no one needs right now. A joint action from oil producer countries to lower
production could encourage a certain recovery in oil prices. But any supply-side intervention should be sizeable to match the historical
decline in demand, with an estimated 5 million barrels decline in daily oil demand only due to grounded planes globally.
Most Asian
indices advanced but gains remained timid. Stocks in Hong King and Shanghai gained 0.28% and 0.12%, while Nikkei slid 0.89% and the ASX 200
gave back 2.02% after yesterday’s 7% on stimulus measures.
European futures hint at a mixed open on Tuesday. The FTSE 100 is expected to open
on a negative note, while Eurostoxx futures point at a flat start. News that the coronavirus outbreak could be approaching its peak in Europe
should curtail the selling pressure.
By Ipek Ozkardeskaya
