German shares lead Europe higher, US market closed, ASX futures up
Published 26-MAY-2020 10:33 A.M.
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2 minute read
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While US and UK markets were closed overnight, other European markets extended gains despite thin trading, providing a strong lead for our local market. ASX SPI200 Futures were up 47 points to 5673 points.
The DAX rallied 3.9% to 11,391.28 in Frankfurt, Germany.
The main focus this week in the US will be on manufacturing and consumer confidence data. Investors were factoring in a long-awaited rebound in recent weeks as global economies continue to ease restrictions.
Overnight trading
Looking across global markets yesterday, the NIKKEI 225 was the standout performer in the Asian region gaining 353 points or 1.7% to close at 20,741 points.
Hong Kong markets stabilised after a 5.6%/1300 point decline on Friday.
The Hang Seng gained 0.1% or 22 points to finish at 22,952 points.
There was little movement once again in the Shanghai Composite as it gained 0.1% to close at 2818 points.
Strong business sentiment numbers drove the DAX 2.9% higher as the index surged 317 points to 11,391 points, its best close since early March.
The CAC 40 followed suit, rallying 95 points or 2.1% to close at 4540 points.
Australia set for another strong day
Very bullish sentiment regarding an imminent recovery in the Australian economy, combined with anticipated signs of better things to come in the US, underpinned a 2.2% increase in the S&P/ASX 200 as it gained 118 points to finish at 5616 points.
Gains were broad based as industrials, consumer discretionary and real estate sectors outperformed. Lockdown-sensitive shares including Webjet and Qantas rallied 15 per cent and 7 per cent respectively.
Technical indicators continue to look extremely bullish with most markets - including Australia - breaking out to the upside. It remains to be seen if the economic recovery will be as straightforward as traders anticipate or if the stock market party is somewhat premature. Either way investors should brace themselves for volatile weeks.
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