The economy has been decimated by home orders that have forced businesses to shut down, to put millions of people out of work and to plunge stocks into a bear market. Although the economy remains in the toilet, investors have decided to wear pink glasses in recent times.
Also helping to lift the spirit of investors, Memorial Day’s trip has been slightly higher than in the past few weeks, giving markets hope that business is starting to come back to life. Travel and leisure companies led Tuesday’s earnings as local economies continued to gradually reopen across America.
And politicians have pledged to continue pumping the stimulating economy to avoid a collapse.
“Risk appetite has improved for a couple of months, partly on hope of a vaccine, but mainly because of expectations that the huge central bank and government stimulus packages announced in response to the Covid-19 pandemic will fuel a rapid recovery in demand, “said Fawad Razaqzada, market analyst at ThinkMarkets.
All that positive market sentiment weighs on traditional safe haven bets like gold, US dollar and US treasury bills.
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