US stock markets surged and posted their best day in nearly two weeks overnight on signs of a slowdown in coronavirus deaths and new cases in several countries. The Standard & Poor’s 500, the Dow Jones industrial average, and Nasdaq all rallied over 7% on hopes the coronavirus pandemic is stabilizing. New York Gov. Andrew M. Cuomo said the spread of the virus in his state may be topping out. By the way, the state reported its first daily decline in coronavirus deaths Monday, which added to the positive sentiment in the markets.
Asian equities showed positive dynamics as well, staying upbeat for the second day in a row. Investors cheered the comments from New Zealand and Japan that indicated some more supportive measures for the economy amid the virus fears. Meanwhile, the Reserve Bank of Australia has kept its official cash rate at the historic low of 0.25% just weeks after it was cut from 0.5%. After the meeting, Australia’s S&P/ASX 200 edged 0.65% lower. China’s Shanghai Composite added 2% while Japan’s Nikkei 225 gained around 2%.
In Europe, stocks extended the rally since the start of the week on further signs of slowing growth in the spread of the coronavirus. The UK FTSE 100 jumped 2% while the German DAX 30 rallied 3.5%. Today, the EU’s finance ministers will agree a list of measures to mitigate the impact of the virus on the region’s economies. A coordinated deal could add to the upbeat tone in the European markets.
In currencies, the dollar turned negative against major counterparts after the recent rally. EURUSD bounced from local lows and now targets the 1.09 handle. Positive German industrial production data came as the additional bullish driver for the common currency. However, the current recovery looks unsustainable as long as the prices remain below at least the 50-DMA around 1.0980.