Germany’s DAX added 1.4%, France’s CAC 40 gained 1.2%, the FTSE rose 0.2%, Hang Seng Index advanced 1.2%, Japan’s Nikkei was 1% higher, and the Shanghai Composite Index was up 0.8%
European and Asian markets made gains on Tuesday, with a Wall Street rally lifting sentiment worldwide.
Germany’s DAX rose 1.4%, France’s CAC 40 was up 1.2% and the Europe-wide Stoxx 600 rose 1.3%. The FTSE edged 0.2% higher.
Whatever medicine the market took over the weekend it worked as after experiencing their worst week since October, global equity markets got February off to a strong start as concerns eased over the broader market impact of retail investors, wrote Deutsche Bank analysts in a note.
Wall Street had rebounded on Monday after its worst week since October. The Dow Jones rose 0.8%, and the S&P 500 recovered most of Friday’s losses to close 1.6% higher.
Tech stocks led gains on the Nasdaq, which surged 2.6% higher on its best day since early January ahead of Amazon and Alphabet earnings later on Tuesday.
US futures were pointing to continued gains. S&P 500 and Dow Jones futures both edged 0.5% higher as European markets opened, while futures on the Nasdaq rose 0.7%.
Asian markets had also closed higher. Hong Kong’s Hang Seng Index gained 1.2%, and Japan’s Nikkei was up 1%. The Shanghai Composite Index closed 0.8% higher.
Confidence has returned to global equity markets with stocks in Europe higher again this morning after bouncing back on Monday from a choppy final week of January, said Neil Wilson, chief markets analyst at Markets.com.
We can probably put this down to bears lacking any serious catalyst, the combination of stimulus and vaccines still underpinning a broad confidence, and Chinese repo market stress from last week is fading, he said.
Deutsche Bank analysts added: Amidst the broader equity rally, many of the Reddit-fuelled trades from last week lost ground yesterday.