Fri, 05 Jun 2020

Welcome rally on Wall Street

Lola Evans
17 Aug 2019, 09:52 GMT+10

NEW YORK, New York - U.,S. stocks ended a roller-coaster week on a positive note on Friday.

A rally in tech stocks led the mark higher, with all major indices ending with solid gains.

Concerns about a global recession, the U.S.-China trade war, and plunging bond yields drove markets lower through much of the week, exacerbated by a recent abrupt announcement by U.S. President Donald Trump that he was imposing additional tariffs on Chinese goods, only to just as abruptly announce he was delaying tariffs on at least half of what he had proposed.

The president has also been attacking the Federal Reserve over monterary policy, referring to Governor Jerome Powell earler this week as 'clueless.'

The euro on Friday tumbled to as low as 1.1066 before Germany announced it was to lift spending.

German politicians and businesses have been calling for a stimulus program, Karl Schamotta, director of global markets strategy at Cambridge Global Payments in Toronto told the Reuters Thomson news agency on Friday.

"Markets are still betting on a raft of stimulus measures from the ECB in September and that is having a pretty strongly negative effect on the euro," Schamotta said. "But in the near term, this idea that we could see more spending out of Germany is helping to alleviate that."

At the close of trading Friday the Dow Jones Industrial Average was 306.62 points, or 1.2%, higher at 25,886.01.

The Standard and Poor's 500 added 41.08 points, or 1.44%, to 2,888.68.

Doing best of all, the Nasdaq Composite climbed 129.38 points, or 1.67%, to 7,895.99.

There were strong performances in Europe and the UK too. In London the FTSE 100 gained 0.71%.

The German Dax rose by 1.31%, while in Paris, the CAC 409 advanced 1.22%.

In Asia stocks were flat on Friday. The Nikkei 225 in Japan rose 13.16 points or 0.06% to 20,418.91. China's Shanghai Composite edged up 8.03 points or 0.29% to 2,823.82.

The Australian All Ordinaries fell 4.90 points or 0.08% to 6,485.90.

The best performer was the Hang Seng in Hong Kong, which jumped 238.76 points or 0.94% to 25,734.22.

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