After the worst week of last six months on the North American indices, investors entered this week with another disposition and much more optimistic. It is true that buying pressure is partly justified by concrete positive factors, such as the numbers of manufacturing in the USA, which for the first time since July showed again an expansion out of the hole in which it found itself with a strong recovery to 50.9, after having reached a minimum of four years at 47.8. It is a sign that the world’s largest economy may accelerate the pace of growth in a presidential election year.
Another positive point for the Bulls was the fact that the Central Bank of China announced a cut in interest rates and an injection of $22 billion into financial system, thus giving an indication of how it is resolved to use the means at its disposal in order to alleviate the negative effects of the inevitable cooling of the world’s second largest economy, due to the stopping of many businesses as a result of the spread of the coronavirus epidemic. Today, despite the death toll from the Coronavirus epidemic rising to 430 with more than 20,000 infected worldwide, the Bulls on Wall Street are relentless and the rates are more than 1.5%, it remains to be seen whether this is a rebound movement or a sustained reversal of direction after last week’s falls.
Photo by Joshua J Cotten.
