Stocks Up On Positive News

Stocks Up On Positive News

over 3 years ago2 mins

A string of positive news on Tuesday indicated the global economy might be regaining its footing – and emboldened investors decided it was about time the stock market climbed to multi-week highs too 🧗‍♀️

What does this mean?

In the latest signs that the easing of lockdown is boosting economic activity, consumer confidence in the US – a precursor to consumer spending – rose after a sharp plunge the previous month, while new home sales beat expectations. And since consumer spending makes up two-thirds of the US economy, economists are looking at that uplift as an encouraging turn of events.

Consumer confidence did not fall as much in the pandemic as it did during the 2008 financial crisis
Consumer confidence did not fall as much in the pandemic as it did during the 2008 financial crisis

German consumers are getting more swagger in their step as well, according to a similar survey out on Tuesday. But the country’s big news was the announcement that Germans would be allowed to travel across Europe from mid-June, just in time for summer vacation ☀️ That comes days after Spain’s own announcement that international tourism will be kicking off again in July – so maybe summer isn’t canceled after all…

Why should I care?

The bounce in economic optimism sent US stocks to a nine-week high, while the rise in German travel companies’ share prices carried its stock market higher too. And it turns out a can-do attitude is as contagious as a can’t-do pandemic 🌎: UK retail stocks soared after the government announced it’d allow non-essential retailers to reopen in mid-June, while Asian stock markets rose as Japan – the continent’s second-largest economy – lifted its nationwide state of emergency.

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Even initial public offerings (IPOs) are back in business: Warner Music Group restarted its IPO plans on Tuesday with the aim of raising up to $1.8 billion 🎶 The music label – whose artists include Ed Sheeran and Red Hot Chilli Peppers – initially wanted to list on the stock market in February, but it shelved that plan after coronavirus-hassled stock markets hit a bum note.

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