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Global stocks rise to 3-month high amid signs of economic recovery

Global stocks rise to 3-month high amid signs of economic recovery

Global stock indexes rose during Wednesday’s trading to the highest level in three months, amid rising hopes of recovery after reopening economies and after improvement in economic data.

As of 10:14 GMT, the Euro Stoxx 50 index rose 1.97 percent to trade near 3,221.17 points, the highest since March 6.

German DAX 30 index ascended by 2.25 percent and now settles near 12,291.15 points, while French CAC 40 reached 4,948.63 points, up 1.85 percent.

Britain’s FTSE 100 Index advanced to 6,300.06 points, bringing its surge today to about 1.28 percent.

Meanwhile, there are hopes that global economies would soon recover after reopening, following a long period of closure to contain the spread of the Covid-19 pandemic.  

As for economic data, economic activity in the eurozone climbed to a three-month high last month, supporting the performance of the service sector, but still within the scope of contraction.

Data released by Market Research on Wednesday showed that the composite PMI, which includes both industrial and service performance, in the euro zone recorded 31.9 points in the final reading for May, up from 13.6 points recorded in April.

The eurozone's unemployment rate rose in April, and data released by the Eurostate Bureau of Statistics on Wednesday revealed that the eurozone's unemployment rate was 7.3 percent at the end of April, up from 7.1 percent the previous month after the adjustment.

Yet, investors around the world are watching the ongoing unrest in the United States following the death of George Floyd, an African-American citizen, while being detained by Minneapolis police.

US state and local officials have stepped up efforts to contain the protests, amid curfews in major cities and across states due to demonstrations.

On the other hand, Asian stock indexes rose at the close of trading on Wednesday, to close at the highest levels in 3 months.

In Japan, Nikkei 225 index ascended 1.29 percent to 22,613.76 points, the highest level since February 21, while the broader Topix index climbed 0.72 percent to 1,599.08 points.

In Hong Kong, the Hang Seng Index increased by 1.37 percent to 24,325.62, while the Shanghai Composite Index closed 0.68 percent up at 2,923.37.

Australia’s S&P/ASX 200 finished 1.83 percent up at 5,941.60, and South Korea’s Kospi index ascended 2.87 percent to 2,147.

Meanwhile, the dollar index, which measures the performance of six major currencies against the US dollar, slump 0.25 percent at 97.41, after registering at 97.287 early in trading, the lowest level since March 11.

Later in the day, the ISM manufacturing in the U.S. may signal improvement to 44.2 in May from 41.8 in April. 

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