Let’s explore the reason for surging Stocks on US Markets.
- US markets are in best uptrend with Nasdaq hitting all time high and other indices are also showing a positive outlook.
- The positive economical data is giving an indication of early recovery from pandemic crisis.
- Yesterday US reported index of service sector jumped to 57.1 in June compared to 45.4 in May best since 1997. This index is managed by the Institute of Supply Management.
- Surging corona cases are again shutting down the economy in US and giving a hope of further stimulus.
- WHO on Saturday communicated 200000 covid-19 cases in past 24 hrs, highest number of cases reported since the outbreak of the crisis.
- Asian markets are trading with mix biased this morning. (7:55 A.M)
- SGX Nifty is in negative note this morning. (7:55 A.M.)
Why World stocks are surging?
- US markets are surging on huge pump in of money by their central bank and Trump administration. Surge in liquidity has led to this rally and expectation of further stimulus is fueling the markets.
- US economical data is improving from last one month and giving comfort to the investors that the economy will come out from the pandemic sooner than expected.
- Many investors have not yet even participated in this rally due to fear of spreading cases in US at fast pace.
- This surged has ignored the rising cases and shutting down of the economy.
- Dow Jones Industrial Average increased by 459.67 points, or 1.78%, close at 26,287.03.
- The S&P 500 risen by 49.71 points, or 1.59%, ends at 3,179.72.
- Nasdaq Composite Index increased by 226.02 points, or 2.21%, close at 10,433.65.
Asian Markets In Morning
|Indices||Current Value||Prev. Close||% Change|
|Kospi (Jul 01)||2,179.56
|Shanghai Composite (Jul 01)||3,355.20
|SGX Nifty (Jul 01)||10,738.50
Nifty 50 outlook for the day.
- SGX Nifty is suggesting that Indian Markets will start at around 10750 level. Today strategy is “Buy Nifty Future” with a target of 10850 level and stop loss at 10650 .
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Author: Akhil Mahajan, M.D. Mutual Fund Advisory, www.mutualfundadvisory.co.in, 9906357069