7:36 AM · 6 July 2020

Indices surge on Monday morning

Major indices started the week with explosive rally following an outburst of euphoria in China. Without a specific catalyst, the Chinese indices (including CHNComp) surged around 5% on state media report that the economy now needs “healthy bull market”. Clearly investors interpreted this as state intervention and it lifted sentiment on global indices as well. As a result US2000 surges by 2.8%, US30 1.8%, DE30 and US100 1.5% - the last one setting another all-time high. Investors chose to ignore new COVID related restrictions in Australia and Spain.

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