over 3 years ago • 2 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 🧗♀️
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.
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…
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.
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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