Stock markets rebound strongly encouraged by Trump's plan to revive the economy in June

The world's stock markets woke up this morning encouraged by Donald Trump's plan to revive the economy in June. The first to open, those of Southeast Asia, have begun the day's trading with a distribution of profits in all markets, except that of Indonesia, which has recorded red numbers. European companies also posted gains of around 3%, spurred on by the announcement by the pharmaceutical company Gilead Sciences on the development of a drug for the most serious coronavirus patients. Trump's announcement of economic recovery means that there is some light at the end of the tunnel and investors are reacting positively.  

The most notable increases were in Paris, which bounced 3.18%, Frankfurt, which rose 3%, and London, which posted 2.93%. The Euro Stoxx 50 index, which reflects the performance of the fifty or so companies with the highest capitalisation in the euro zone, rose to 2.86%. Wall Street also managed to close this Thursday in positive, thanks to a slight rise, and the Dow Jones was up 0.14%.  

Asian stocks regained their momentum after a week of losses, despite the data presented on Friday by the Chinese National Bureau of Statistics. The economy of the Asian giant has fallen by 6.8% in the first half of the year. This is the first setback suffered by China in almost half a century as a result of the stands till in the economy caused by the coronavirus. Tokyo has risen to 3.15% and Hong Kong has posted a 1.5% gain.  

The Chinese economy has not slowed down since 1976, the year Mao Zedong, leader of the People's Republic since its founding in 1949, died. That year a quarter of a million people died in the devastating Tangshan earthquake and China suffered a 1.6% recession. From that moment on, recession was unknown to China despite its turbulent history. Neither the Tiananmen massacre, nor the 2008 financial crisis, nor the trade war with the United States had slowed the economy in the way that the coronavirus has.  

The markets are reacting with upsurges as they perceive that the worst of the coronavirus has passed, although it remains to be seen how the rest of the countries will face the return to normal. "It should not be assumed that there will be a normalisation from now on", warns Andre Cicione, head of strategy at TS Lombar in London in a statement reported by Reuters. According to this analyst, investors should take into account two things during the coming months: "The first is that we will not return to the same pace of life before the pandemic and for several months we will have to live with social distancing. The second is the turmoil that will be experienced in the coming months because of this situation," he said.  

The good signals coming from the stock markets have not resulted in increases in oil prices, which continue to fall. Volatility returns to the market for the commodity this Friday and prices are unable to rise in the face of the brutal fall in demand triggered by the lockdown. The Brent barrel, the benchmark for Europe and the Middle East, is paying out at around 28 euros.  

In the debt markets, the risk premium, the difference between the Spanish 10-year bond and the German one has fallen slightly below 130 points and the euro remains stable against the dollar at a rate of 1.08 dollars per euro.