stock markets

Global stock markets surge, pound in focus despite Brexit

Agence France-Presse

This is AI generated summarization, which may have errors. For context, always refer to the full article.

The Dow Jones jumps 1.5% on Monday, September 28, adding to a strong finish the previous week

Global markets surged higher on Monday, September 28, as bargain-seekers moved in following sell-offs triggered by virus spikes and the return of some economically damaging containment measures.

As the coronavirus death toll topped one million, the World Health Organization warned that figure could double without more global collective action.

Major indices took little notice however as the Dow Jones jumped 1.5%, adding to a strong finish the previous week. 

And despite swirling clouds of Brexit uncertainty, London added 1.8% while Frankfurt and Paris gained 3.2% and 2.4%, respectively. 

“Investors appear to be warming towards equities and other risk assets again,” remarked Fawad Razaqzada, market analyst with ThinkMarkets.

“The relatively low (new) COVID-linked deaths mean investors are not showing too much concern towards rising virus cases. Instead, they remain optimistic over the potential approval of a vaccine soon, which together with ongoing central bank support will probably help accelerate the recovery,” Razaqzada added.

Elsewhere, investors kept an eye on the resumption of trade talks between Britain and the European Union, hoping for a breakthrough despite feuding over a controversial United Kingdom bill that threatens to scupper a deal.

The pound rallied against the dollar and euro on optimism surrounding the latest talks.

Traders also awaited the first United States presidential debate this week, which could set the tone for November’s election, with many worried about potentially tense scenarios if the vote is close.

The agenda for US data this week includes reports on US manufacturing and consumer confidence and the September employment report. 

On the corporate front, HSBC shares surged by almost 9% in London following news that its biggest investor Ping An Insurance Group had increased its stake in the bank.

Shares in steel giant ArcelorMittal soared by almost 11% after the firm said it would merge its US operations with producer Cleveland-Cliffs.

Key figures around 9:10 pm GMT
  • New York – Dow Jones: UP 1.5% at 27,584.06 (close)
  • New York – S&P 500: UP 1.6% at 3,351.60 (close)
  • New York – Nasdaq: UP 1.9% at 11,117.53 (close)
  • EURO STOXX 50: UP 2.8% at 3,223.19 (close)
  • London – FTSE 100: UP 1.5% at 5,927.93 (close)
  • Frankfurt – DAX 30: UP 3.2% at 12,870.87 (close)
  • Paris – CAC 40: UP 2.4% at 4,843.27 (close)
  • Tokyo – Nikkei 225: UP 1.3% at 23,511.62 (close)
  • Hong Kong – Hang Seng: UP 1% at 23,476.05 (close)
  • Shanghai – Composite: DOWN 0.1% at 3,217.53 (close)
  • Pound/dollar: UP at $1.2840 from $1.2746 at 9 pm GMT on Friday, September 25
  • Euro/pound: DOWN at 90.92 pence from 91.26 pence
  • Euro/dollar: UP at $1.1664 from $1.1631 
  • Dollar/yen: DOWN at 105.56 yen from 105.58 yen
  • West Texas Intermediate: UP 0.9% at $40.60 per barrel
  • Brent North Sea crude: UP 1.2% at $42.43 per barrel


Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.

Summarize this article with AI

How does this make you feel?

Download the Rappler App!