US stock markets ended in green on Tuesday as investors brushed aside losses in Asia and weighed the strong economic recovery against rising COVID-19 cases. The S&P 500 and Nasdaq finished on record highs, narrowly rising after US consumer confidence data surged in June to its highest point since the pandemic began.
European equities also climbed, with Frankfurt’s DAX up nearly one percent and Paris and London edging higher.
German inflation data showed that the rise in consumer prices had eased a bit in June, to a yearly rate of 2.3 percent, but economists forecast it could pick up again to between three and four percent this year.
“European stocks are pushing higher on Tuesday, following on from record highs reached on Wall Street, but (there was) a more subdued session in Asia as Covid cases rise,” Oanda market analyst Sophie Griffiths said.
In Australia, the cities of Sydney, Perth, Brisbane and Darwin all have been put into lockdown, with leaders in the country also struggling to get its inoculation program up to speed.
The disease has led to similar measures in South Africa, while Russia, parts of Asia, Europe and South America also have witnessed worrying spikes.
The developments have raised concerns that the forecast global recovery could be knocked off course or at least slowed.
On a more optimistic front, the improved outlook on jobs and business conditions has boosted US consumer sentiment.
“Low virus transmission, vaccinations, and expanded reopenings made consumers much more confident,” Oren Klachkin of Oxford Economics said in an analysis. “Consumers are coming out of their shell.”
Markets are looking forward to more key US data later in the week, culminating with Friday’s jobs report for June.