Global stocks up on Irma and North Korea relief
Major U.S. stock indices rose by more than 1% on Monday and closed at a record high. The Hurricane Irma was not as destructive as expected. Also, the tension around the Korean peninsula eased.
The Dow Jones Industrial Average rose by 1.19%, closing at 22,057.37 points and showing the largest one-day growth since February. S&P 500 added 1.08% to 2,488.11 points, while Nasdaq Composite increased by 1.13% to 6,432.26 points.
In the financial sector: JPMorgan shares rose by 2.17%, while Travelers’ stocks climbed by 2.35%. Universal Insurance Holdings and HCI Group jumped by more than 12%, while Heritage Insurance shares went higher by 21%. Apparently, investors’ worries about the consequences of the Hurricane Irma decreased – as a result, shares of insurance companies moved up. The storm that hit the U.S. coast did not bring so much destruction as experts predicted. However, the amount of damaged or unrecoverable property hit billions of dollars.
Tesla’s shares went up by almost 6% after reporting that the company had released a free update to extend the battery capacity of certain models for drivers in Florida.
Apple rose by 1.81% after yesterday’s decline. The shares went up ahead of the presentation of the 8th model of the iPhone. Experts expect that sales will have consequences for both Apple and its competitors.
Shares of the Israeli pharmaceutical company Teva Pharmaceutical Industries on the New York Stock Exchange soared by 19.3% on the news that the company had appointed a new chief executive, Kore Shultz.
Asian stocks reached a 10-year high on Tuesday morning. Investors’ fears eased as the North Korean government did not bring another missile test on Saturday, when the country celebrated its founding day.
The largest MSCI index in the Asia-Pacific region outside of Japan rose from 0.2% to a record level since the end of 2007. The Japanese Nikkei added 1.0%.
European markets opened higher on Tuesday, following the records of the Asian and U.S. markets. The most of sectors were traded in positive territory. The European STOXX 600 moved up by 0.3%, despite the doubts.
The financial sector became the leader of trading, rising by 0.7%. Shares of some insurance companies, which jumped by 2% on Monday, continued their upside movement on Tuesday and rose by 0.3%.
In other sectors: Volkswagen increased by 0.3% after it announced plans to invest billions of euros in the development of new electric vehicles and to present the electro-versions of all its 300 models by 2030. In addition, the automaker is going to double investment to produce eco-friendly vehicles.