During today’s session, European stocks rose while US 10 Year Treasury yields fell by 4 points to 0.69%. Performance of the main indices is as follows:
- Eurostoxx rose by 1.3%
- Germany DAX rose by 1.5%
- French CAC40 rose by 1.3%
- UK FTSE rose by 1.1%
- Spain IBEX rose by 1.1%
The rise in stocks comes after strong losses in the first quarter of the year, with the UK FTSE recording its worst quarter since 1987. Investor risk appetite improved somewhat at the opening of today's session, supported by the release of positive Chinese PMI data and optimism about the possibility of the coronavirus pandemic reaching its peak today. It is expected that the number of infected people will gradually decline after the World Health Organization indicated a stability in the number of cases in Spain and Italy.
However, the market is somewhat cautious with disappointing European and US PMI data expected tomorrow, just as China reported its lowest PMI levels at the peak of the virus in February. The markets may therefore be somewhat prepared for the negative data expected in the coming period.