Global Markets Set to End Worst Quarter Since 2008 After Official Chinese Factory Data Boosts Market Temper
World shares looked prepared to close their worst quarter since 2008 on a brighter note Tuesday, as robust Chinese factory information held out hope for an economic recovery even as much of the world shut down to battle the coronavirus.
Shares have rallied since the beginning of last week; however, they stay down more than 20% for the quarter. European stocks have had an even worst time, witnessing their worst three months since 1987.
However, with trillions vanished off global markets in March and legislators responding with over $10 trillion and counting of monetary stimulus packages, a semblance of calm has come back this week.
Several analysts have been bold enough to call a bottom in shares and say the lows of early last week are unlikely to be revisited.
That followed yields in Asia after China’s official manufacturing purchasing managers’ index (PMI) surged to 52.0 in March from the lowest ever 35.7 last month, succeeding forecast of 45.0.
Analysts cautioned that underlying activity in all probability remained below par since the improvement measured the online balance of firms reporting an expansion or contraction; however, markets welcomed the news.
S&P 500 futures surged 0.6% ESc1, pointing to a more reliable open on Wall Street after a rally Monday pushed the U.S. index towards a 20% gain since the lows of last week.