European stock prices rise in hopes of economic recovery :: Dienas Bizness

Global stock prices rose to new highs on Wall Street on Monday, while the cryptocurrency Bitcoin rose to an all-time high following Tesla’s announcement of investments in the cryptocurrency.

Oil prices rose to a 52-week high.

All three major Wall Street indices rose to new highs, continuing last week’s rise in hopes of a soon-to-be-adopted new US economic stimulus package and the expected economic recovery.

Investors believe US President Joe Biden will be able to secure approval for most aspects of his $ 1.9 trillion stimulus package, analysts said.

US Treasury bond yields on 10- and 30-year bonds rose temporarily, intensifying the debate on the risks of higher inflation.

“Rising interest rates point to an improving economy,” said Patrick O’Heer, an analyst at Briefing.com, adding that there was little evidence of general inflation in the economy.

“The stock market is not overly concerned about the inflation factor. One day it will happen. Not at the moment,” O’Her said.

Bitcoin hit a record high of $ 44,795.20 after the US electric car manufacturer Tesla Motors bought the cryptocurrency for about $ 1.5 billion and plans to adopt it soon as a means of payment for car purchases.

ThinkMarkets analyst Favad Razakzada noted that this is probably one of the most significant developments in the cryptocurrency industry.

“Tesla will be a big player in the automotive industry, and if it starts accepting Bitcoin as a means of payment, it will give the cryptocurrency additional legitimacy,” the analyst explained.

The price of Brent crude rose 2.1% to $ 60.56 a barrel on the London Stock Exchange, the highest level since the start of the new coronavirus pandemic. This was facilitated by the decision of OPEC and the Allies to reduce crude oil production as the pandemic reduced demand.

The share price of the US oil company “Chevron” increased by 2.5%, the share price of “Apache” – by 10%, and the share price of “Halliburton” – by 5.6%.

The Dow Jones Industrial Average rose 0.8% to 31,385.76 points on Monday, the Standard & Poor’s 500 rose 0.7% to 3,915.59 points and the Nasdaq Composite index rose 1.0% to 13,987.64 points.

The London Stock Exchange index FTSE 100 rose 0.5% to 6523.53 points on Monday, the Frankfurt stock exchange index DAX 30 rose less than 0.1% to 14,059.91 points, while the Paris stock exchange index CAC 40 rose 0.5% to 5686.03 points.

In the New York Stock Exchange e-commerce, the price of WTI crude oil rose 2.0% on Monday to $ 57.97 a barrel. The price of Brent crude oil rose 2.1% to $ 60.56 a barrel on the London Stock Exchange.

The euro appreciated against the US dollar from 1.2046 to 1.2049 dollars per euro on Monday, the British pound against the US dollar rose from 1.3735 to 1.3741 dollars per pound, and the US dollar against the Japanese yen fell from 105.39 to 105.22 yen per dollar. The euro fell against the British pound from 87.71 to 87.67 pence per euro.

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