Tuesday, 19 May 2020
- Asia shares set to follow Wall Street rally on vaccine hopes
- Euro jumps on Franco-German proposal for EU fund, joint debt
- Oil jumps to two-month high on easing lockdowns
Asian shares were set to rise on Tuesday after data from an early-stage trial for a coronavirus vaccine lifted hopes for a near-term economic recovery, sending global equity markets and oil prices surging.
Hong Kong futures were up 1.8% and Australian shares were also set to open higher. Nikkei futures were trading above the Nikkei 225 index’s previous close, pointing to an opening gain of about 2%.
On Wall Street, the benchmark S&P 500 posted its biggest one-day percentage gain in almost six weeks, gaining 3.15%. The Dow Jones Industrial Average rose 3.85% and the Nasdaq Composite added 2.44%. The pan-European STOXX 600 index closed up 4.1%, its biggest one-day percentage gain since March 24.
The Indian rupee is expected to trade higher against the dollar tracking gains in Asian and U.S. shares after early trials of an experimental vaccine to combat the coronavirus showed promise. The rupee will likely be quoted at around 75.70-75.75 in early trades compared with 75.91 at 2.00 p.m. yesterday
The euro jumped on Monday against the dollar and Swiss franc after Germany and France issued a call for a 500 billion-euro ($545.65 billion) recovery fund for Europe and proposed to allow the European Commission to borrow money on markets to finance the fund. Against a basket of currencies the U.S. dollar index was 0.721% lower at 99.666. The dollar was also pressured by strength in commodity-linked currencies after oil prices jumped on Monday
Oil prices on Monday jumped to their highest in over two months on positive early results on a potential coronavirus vaccine, optimism about a resumption in economic activity and signs producers were following through on planned output reductions. Brent futures for July delivery rose $2.31, or 7.1%, to $34.81 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $2.39, or 8.1%, to $31.82.
Source : Reuters