NEW YORK, New York – U.S. stocks extended their rally Wednesday amid a global clamor for stocks, falling oil prices and falling Treasury yields.
But will it last?
“The decline in bond yields is being interpreted by stock markets as a short-term positive,” Marko Kolanovic of JPMorgan Chase told MarketWatch on Wednesday. Yet, “in the absence of pre-emptive rate cuts by global central banks, we see risks worsening with the culminating effect of restrictive monetary policy yet to come.”
S&P 500 (^GSPC): The Standard and Poor’s 500 Index closed at 4,508.59, up +12.89 points or +0.29 percent. Market activity was robust, with a total volume of 1.631 billion shares traded.
Dow Jones Industrial Average (^DJI): The Dow Jones Industrial Average ended the day at 35,029.51, marking a gain of +201.81 points or +0.58 percent. The index recorded a trading volume of 208.866 million shares.
NASDAQ Composite (^IXIC): The NASDAQ Composite had a relatively subdued performance on Wednesday, closing at 14,121.36 with a modest gain of +26.98 points or +0.19 percent. Trading for the day saw a total volume of 3.382 billion shares.
The day’s trading reflected a cautious approach from investors, with index gains remaining range-bound.
Global Foreign Exchange Market Update: Currency Movements Wednesday
In the foreign exchange markets on Wednesday, major currency pairs saw various movements. Here are the latest quotes for key currency pairs:
Euro/US Dollar (EURUSD): The euro against the US dollar closed at 1.0847, indicating a slight decline of -0.29 percent or -0.0031.
US Dollar/Japanese Yen (USDJPY): The Japanese yen fell sharply to 151.34, a loss of -0.65 percent or -0.97.
US Dollar / Canadian Dollar (USDCAD): The Canadian dollar edged up +10 percent or +0.0013 to 1.3678.
Pound Sterling/US Dollar (GBPUSD): The British pound slipped -0.063 percent or 0.0078 to 1.2419 on Wednesday.
US Dollar / Swiss Franc (USDCHF): The Swiss franc strengthened to 0.8883, indicating a slight increase of +0.07 percent or +0.0006.
Australian Dollar / US Dollar (AUDUSD): The Australian dollar edged higher to 0.6510, showing a modest increase of +0.06 percent or +0.0004.
New Zealand Dollar / US Dollar (NZDUSD): The New Zealand Dollar against the US Dollar settled at 0.6025, experiencing a positive movement of +0.30 percent or +0.00178.
Stock markets recover around the world on Wednesday: significant gains on major indices
In a surprising turn of events, global stock markets saw a strong rally on Wednesday, with significant gains seen across major indices. Investors showed confidence amid positive economic indicators, including lower inflation figures in the US and UK, and upbeat corporate performance.
Let’s take a closer look at the latest quotes from the main stock markets:
S&P/TSX Composite Index (^GSPTSE): Canada’s S&P/TSX Composite Index closed at 20,054.28, showing a slight increase of +30.55 points or +0.15 percent. Total trading volume for the day reached 116.488 million shares.
FTSE 100 (London): The FTSE 100 index closed at 7,486.91, marking a gain of +46.44 points or +0.62 per cent.
DAX PERFORMANCE INDEX (Frankfurt): Germany’s DAX index jumped to 15,748.17 on Wednesday, registering an impressive increase of +133.74 points or +0.86 percent.
CAC 40 (Paris): The Paris CAC 40 also joined the rally, closing at 7,209.61 with a gain of +23.93 points or +0.33 percent.
ESTX 50 PR.EUR (Euro Zone): The Eurozone ESTX 50 PR.EUR closed at 4,315.53, up +23.81 points or +0.55 percent.
Euronext 100 index (euro zone): The Euronext 100 index showed a positive development on Wednesday, closing at 1,347.81 with a gain of +5.03 points or +0.37 percent.
BEL 20 (Brussels): The Belgian BEL 20 closed at 3,531.20, reflecting a gain of +23.73 points or +0.68 percent.
MOEX Russia Index (Moscow): The MOEX Russia index saw a slight decline, closing at 2,222.51 with a decline of -4.14 points or -0.19 percent.
Nikkei 225 (Tokyo): In Asia, the Nikkei 225 index climbed to 33,519.70 on Wednesday, reflecting an extraordinary rise of +823.77 points or +2.52 percent.
HANG SENG INDEX (Hong Kong): Hong Kong’s Hang Seng Index saw a remarkable rise, closing at 18,079.00, up +682.14 points or +3.92 percent.
SES Composite Index (Shanghai): The Shanghai SSE Composite Index climbed to 3,072.83, showing a positive change of +16.76 points or +0.55 percent.
Shenzhen Index (Shenzhen): China’s Shenzhen Index also participated in the global rally, closing at 10,077.96, up +72.41 points or +0.72 percent.
STI Index (Singapore): Singapore’s STI index closed at 3,132.12 on Wednesday, up +27.46 points or +0.88 percent.
S&P BSE SENSEX (Bombay): India’s S&P BSE SENSEX index closed at 65,675.93, posting a gain of +742.06 points or +1.14 percent.
NIFTY 50 (Bombay): India’s NIFTY 50 index closed at 19,675.45, up +231.90 points or +1.19 percent.
COMPOSITE IDX (Jakarta): Indonesia’s COMPOSITE IDX jumped to 6,958.21, up +96.15 points or +1.40 percent.
FTSE Bursa Malaysia KLCI (Kuala Lumpur): The FTSE Bursa Malaysia KLCI closed at 1,466.84, posting a gain of +15.12 points or +1.04 percent.
KOSPI Composite Index (Seoul): South Korea’s KOSPI Composite Index gained +53.42 points or +2.20 percent on Wednesday, closing at 2,486.67.
TSEC weighted index (Taipei): Taiwan’s TSEC weighted index closed at 17,128.78, posting a gain of +213.07 points or +1.26 percent.
S&P/ASX 200 (Sydney): Australia’s S&P/ASX 200 index saw a substantial gain of +99.20 points or +1.42 percent, closing at 7,105.90.
ALL ORDINARY (Australia): The ALL ORDINARIES index in Australia gained +109.60 points or +1.52 percent on Wednesday, closing at 7,316.70.
S&P/NZX 50 GROSS INDEX (Wellington): New Zealand’s S&P/NZX 50 GROSS Index closed at 11,352.84, up +179.56 points or +1.61 percent.
Top 40 of the USD Net TRI Index (Johannesburg): The Johannesburg Top 40 USD Net TRI Index recorded a significant gain of +121.16 points or +3.08 percent, closing at 4,057.63.
TA-125 (Tel Aviv): The TA-125 index in Tel Aviv closed at 1,723.85 on Wednesday, up +4.70 points or +0.27 percent.
Price Return Index EGX 30 (Cairo): The EGX 30 Price Return Index in Cairo closed at 24,138.80, showing a gain of +244.70 points or +1.02 percent.
Investors are optimistic about the global economic recovery and this positive momentum is expected to continue in the coming days. Diversified gains in major markets on Wednesday reflect widespread confidence in financial markets around the world.