Asia-Pacific trading on Tuesday saw Japan’s Topix jump 1.4 percent. Indices in Australia and Hong Kong also inched higher and China’s CSI 300 index of Shanghai- and Shenzhen-listed shares was little changed after the central bank said it wanted Rmb400bn ($56bn) to temporarily purchase small business loans from banks. Meanwhile, Wall Street saw the S&P 500 close 0.4 percent higher.
FTSE 100 LIVE: Global stocks edged higher today
According to the FT, US stocks have prospered from a V-shaped recovery due to the pandemic.
Futures markets also tipped the S&P 500 to drop 0.4 percent when trading begins today.
Traders did not seem to be worried by US President Donald Trump warning he would send in the military to tackle the violent protests that have raged for seven days following the death of an unarmed black man George Floyd.
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FTSE 100 LIVE: The London stock index is up by nearly a percentage point
9.30pm update: Late surge offers huge boost to Wall Street
Wall Street saw a late-session rally push it to solid gains as stock market participants looked past widespread social unrest and pandemic worries to focus instead on easing lockdown restrictions and signs of economic recovery.
The Dow Jones Industrial Average jumped 1.05 percent, the S&P 500 gained 0.82 percent and the Nasdaq Composite increased 0.59 percent.
All 11 major sectors in the S&P ended Tuesday in the black, driven by large percentage gains in energy and minerals.
The Nasdaq Composite, the S&P 500 and Dow Jones Industrial Average are edging closer to their all-time highs and are now around two percent, nine percent and 13 percent, respectively, below closing record levels.
The S&P 500 and the Nasdaq have closed in positive territory in six of the last seven sessions.
7.45pm update: US car market beginning to show first signs of recovery
The car market in the US is showing signs of bouncing back after dropping to a record low in April, according to sales figures from several leading brands.
Toyota said sales doubled in May compared against levels in April, but are still 26 percent down from 12 months earlier.
Hyundai also saw sales double last month compared to April, but the figure was also down 13 percent year-on-year.
Analysts at market forecasters IHS Markit expect 12.7 million cars to be sold in the US this year, far below the 17 million sold in 2019 but also up from the 104 million sold in the wake of the financial crisis in 2009.
Stephanie Brinley, lead analyst at IHS Markit said: “Overall, May’s performance suggests that consumers do still want to buy vehicles and basic demand remains.
“Light-vehicle sales are estimated to have recovered to more than 1m units in May, after April 2020 sank to only about 710,000 units.
“In the second half of the year, however, impact from the economic downturn can continue to undermine that demand.”
6pm update: FTSE hits three-month high as London index continues surge
Both the blue-chip FTSE 100 and domestically-focused mid-cap FTSE 250 both climbed 0.9 percent on Tuesday, ending at their highest levels since early-March.
There are suggestions local businesses could receive further fiscal relief during the coronavirus crisis, while investors are also waiting to see if the UK economy slowly emerges from the resultant lockdown.
Charalambos Pissouros, senior market analyst at JFD Group, said: “It seems that investors are more focused on the prospect of a global economic recovery and barring any fresh and more serious tensions between the US and China, they may continue to increase their risk exposures.”
4.20pm update: Pound climbs to one-month high against US dollar
Sterling has staged a recovery by climbing 0.4 percent against the US dollar to reach $1.2513, its highest since May 1.
Viraj Patel, FX and global macro strategist at Arkera, said: “Despite what is likely to be a period of high Brexit headline risks for UK assets in the coming weeks and months, a report that the UK may be willing to compromise in upcoming Brexit negotiations – along with broad-based US dollar weakness due to the idiosyncratic risk posed by nationwide US protests – is keeping the pound underpinned against the dollar.
But strategists at ING wrote in a research note: “The fading prospects of an extension to the post-Brexit transition period, and the risk of supply chain disruption at the start of 2021 (either without a trade deal or with a soft, narrowed deal), are to weigh on sterling in coming days and weeks.
“Although sterling rallied yesterday in line with the recovery in general risk appetite, the forthcoming UK-EU trade negotiations overhang should dominate and weaken it this month.”
Toyota said car sales in the US doubled last month
3.37pm update: Decision on Germany’s huge coronavirus stimulus packaged delayed amid further rows
The final decision on a huge stimulus package worth hundreds of billions of pounds to aid the recovery from the coronavirus pandemic in Germany has been delayed, wityh parties in Angela Merkel’s coalition wrestling over the final details.
A spokeswoman for the Social Democrats (SPD) said senior members of the party and Ms Merkel’s conservative CDU/CSU bloc plnned to continue talks untol 11pm on Tuesday and resume them on Wednesday after a Cabinet meeting.
A final deal was expected to be reached later today.
SPD co-leader Norbert Walter-Borjans said before today’s negotiations: “It will take a long time and probably will not end today.
“There are packages that can be agreed on…but there are also things the CDU and CSU have problems with, for example, always when it comes to (helping households with) small- or medium-sized incomes.
“And there is a big topic that we need to talk about, namely that from our point of view, there cannot be a purchase incentive for cars with combustion engines.”
3.15pm update: Wall Street opens on front foot as global stocks surge
Global stocks reached their highest levels in three months as optimism about a swift economic recovery from the coronavirus pandemic grows.
The S&P 500 has already jumped 0.3 percent since Wall Street opened, and is remaining within 10 percent of its all-time high.
The US benchmark has climbed by more than a third since its low in March, while Europe’s Stoxx 600 has surged by a quarter during the same period.
Piper Sandler strategists Craig Johnson and Adam Turnquist said: “Green shoots have begun to emerge along the road to recovery.
“Signs of a bottom in economic data have recently developed as the global economy begins to reopen.
“New confirmed cases of Covid-19 are decelerating, while hope for a timely vaccine remains high.
“Tensions with China continue to escalate, but we continue to believe cooler heads will ultimately prevail given the vulnerable economic backdrop.
Germany is struggling to agree on a huge stimulus package to aid the coronavirus financial recovery
Paul Withers taking over live reporting from Laura Mowat.
2.32pm update: High end housing market will take longest to recover from crisis
The housing industry is adamant the sector can bounce back.
Group CEO of Enness Global, Islay Robinson, said: “The high-end market is one built on a quality over quantity mentality and as a result, a transactional decline can often be more pronounced during periods of market instability, with recovery periods also taking longer.
“That’s certainly been the case of late and while much of the wider market enjoyed a swift return to form following December’s election, the almost immediate industry-wide lockdown that followed in March has prevented the top end of the market from gathering momentum.
“This has been driven, for the most part, by a decline in foreign buyer interest with many unable to travel and therefore opting to put their purchase on hold.”
1.23pm update: Airlines, travel, engineering, oil and luxury retail all see positive market gains
Chief market analyst at IG, Chris Beauchamp, said: “European markets are firmly in positive territory once again, with the Dax playing catch-up after yesterday’s holiday as it surges 3%, and US futures are positive.
“This comes as the US domestic situation appears to worsen, but a market-centric view might argue that this at least distracts the president from his quarrel with China, and thus reduces the likelihood of the trade war being revived.
“For a second day the FTSE 100 is dominated by stocks finding strong inflows thanks to a more optimistic outlook on the global economy.
“Airlines, travel, engineering, oil and luxury retail are all featured in the big gainers in London this morning, continuing yesterday’s bounceback theme”.
12.35 pm update: Financial services sector need 30,000 more staff
Financial services negotiators are imminently needed by banks, insurers and credit card firms to help the public deal with their finances.
Founder of Momenta Group, Richard Stevens, said: “There’s never been a greater need to staff these vital industries which essentially governs people’s livelihoods under the extreme circumstances in which we find ourselves.
“Automation right now isn’t a viable option when what’s needed is calls handled by relatable, empathetic and skilled negotiators.
“As a result, we see many financial institutions requesting UK-based call handlers rather than the previous trend of offshoring financial services call centre operations.”
The travel sector could suffer greatly this summer
12.03pm update: Hopes for summer holidays pushes TUI share price up
Tui’s UK-listed shares leaped 6% as it benefited from hopes for better sales to German tourists.
The share price rose by 50 percent at the end of May as Spain said they would welcome tourists at the end of July.
11.21am update: Oil prices have risen as investors expect higher demand
Brent crude was up one per cent at $38.70 per barrel.
The US benchmark, WTI crude, was up 0.7 percent higher at $35.70.
10.07am update: Bank of England mortgage figures plunge as lockdown effects lending and approvals
The latest figures reveal mortgage lending has dropped to 0.3 billion from 4.8 billion.
Mortgage approvals have dropped from 15.8k, from a previous 56.16k.
Managing Director of Enness Global Mortgages, Hugh Wade-Jones, said: “The latest figures present a dramatic decline across the market with both lender and buyer activity evaporating at a greater rate than forecast.
“But before we head for the hills, it’s important to remember that this data only provides a snapshot of market conditions and one that was taken in the midst of a full market shutdown.
You wouldn’t cut someone down at the knees and expect them to run a marathon and quite frankly, it’s a wonder that any mortgages were approved at all let alone funds deployed.
“So while the UK property market may be experiencing an out of body experience due to an abrupt reduction in activity, it’s far from being pronounced and although it may take a month or two to see a recovery materialise, early indicators at ground level suggest there is plenty of life in it yet.”
House prices plummeted in May due to the pandemic
9.56am update: May was a good month for shares on the London Stock Exchange
On Friday the FTSE 100 index closed on a high.
There is hope that the COVID-19 market crash could create an opportunity for investors.
9.14am update: Average price of a house in May fell the most since 2009
The average price of a house sold in May was £218,902, down from £222,915 in the previous month.
Robert Gardner, the mortgage lender’s chief economist, said: “UK house prices fell by 1.7% over the month in May, after taking account of seasonal effects – this is the largest monthly fall since February 2009.
“As a result, the annual rate of house price growth slowed to 1.8%, from 3.7% in April.”
9.09am update: US shares continue to seem unharmed by protests
Investors seem to be more concerned about other global factors, such as the relationship between the US and China.
CMC Markets analyst Michael Hewson said: “The main focus once again appeared on the longer-term prospects of the easing of lockdowns across the world, though if the violence on US streets continues for much longer, US investors might have to cope with a lockdown of a different kind, imposed by the National Guard.”
In the UK, the FTSE-100 Index gained 25.58 points to 6192 in early trading.
7.43am update: No deal Brexit cast doubts about UK’s economy ability to recover from COVID-19
An economist at Deutsche Bank AG, Sanjay Raja, has claimed a no-deal Brexit would halve the pace of growth next year to 1.5 percent.
The UK in a Changing Europe has claimed GDP could decrease by eight percent over ten years due to trade barriers.
7.29am update: Small businesses across America face new threat with protest looting
Small businesses have struggled because of the COVID-19 pandemic and now are struggling due to the looting.
Many shop owners have said their premises have been damaged from broken windows and even merchandise has been stolen.
7.15am update: Travel companies Easyjet and Carnival to be removed from the FTSE 100
The two businesses have seen their share price plunge this year due to the COVID-19 lockdown.
Prices have fallen 34 percent and 53 perce t in the past three months.
The air industry has suffered greatly from the COVID-19 lockdown
6.14am update: Australia’s Zip leans ob US market with buy-now-pay-later peer
Zip Co Ltd said on Tuesday it will buy out buy-now-pay-later (BNPL) firm QuadPay in a stock deal valuing the New York-based company at $269 million, as the Australian firm looks to tap the fast-growing US-market where its rivals are thriving.
Zip will offer 119 million shares, or about 23percent of the company, to shareholders of QuadPay for the remaining 86% of the US firm it does not already own.
Larger rivals like Afterpay Ltd and Sweden’s Klarna have flourished in the United States, building on the BNPL sector’s growing popularity, especially with millennials, as it allows consumers to buy products in interest-free installments.
The news sent Zip shares soaring as much as 44% to A$5.40, their highest since October last year.
The firm also said it secured up to A$200 million ($135.70 million) from an affiliate of Susquehanna International Group through the issue of notes and warrants, highlighting growing investor interest in the space.