Wall St Surges As Rescue Plan Advances

By Glenn Dyer | More Articles by Glenn Dyer

The ASX is heading for a big weekly gain if the overnight trading on the futures platform is any guide – it was up more than 150 points or more than 3% which could if it sticks in today’s session, see a gain of around 10% for the week.

The ASX futures followed the strong lead from Wall Street ahead of the probable approval of the $US2 trillion bailout and support package by the US House of Representatives tonight. It then has to be formally drafted and sent to President Trump for approval.

With that pot of gold almost within reach, it was no surprise that Wall Street soared and soared and ended the third day with a huge gain and its best three-day session since 1933.

The Dow jumped 1,351.62 or 6.38%, the S&P 500 added 6.24% or 154.51 and the Nasdaq was up 5.6% or 413.74. The S&P 500 is up 17.5% from its most recent low on Monday of this week, the Dow is up 21.2% (and absurdly in a so-called bull market phase) and the Nasdaq is up 18%.

For the year to date, the Dow is down about 21%, the S&P 500 is about 18.7% lower, and the technology-heavy Nasdaq is off 13.1%.

The ASX 200 is up 16% since Monday’s lows after Thursday’s 2.3%, 115 point gain (which was much more in early trading).

The US rescue bill has worked its magic – Boeing shares are up nearly 90% this week, Carnival Cruises (the owner of the Ruby Princess) has seen a 46% surge in its share price while American Airlines shares are up 50% (which will please the company’s biggest shareholder, Warren Buffett’s Berkshire Hathaway.

The US bill was brought closer by the record rise in US jobless claims to 3.28 million – the highest ever one week rise. Market forecasts were for a million rise according to a Reuters poll, showing how out of touch many Wall Street analysts are.

The markets must be feeling more confident as the Aussie dollar ended the overnight session above 60 US cents and remained there in early Asian dealings. US 10 year Treasury bond yields were around 0.8290%, little changed from a day earlier. Gold rose, but oil, silver, copper and iron ore all fell.

In Europe stocks also rose and the STOXX 600 index was up 2.55% with gains in almost all markets.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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