Stock Markets Show Cautious Optimism: Live Updates


European markets opened higher on Tuesday following Monday’s big rise on Wall Street, reflecting cautious optimism over government efforts to blunt the economic damage from the coronavirus.

London opened 2 percent higher, following a generally positive trading day in Asia. Futures markets were predicting a modest rise on Wall Street when it opens later in the day.

Other signs of cheer could be found in the markets. Oil futures rose on Tuesday after tumbling to their lowest levels since 2002. Oil prices offer a handy gauge of how investors expect the economy to perform. Further emphasizing the point, the price of gold, long considered a safe place to park money, fell in Tuesday trading. Prices for longer-term U.S. Treasury bonds, another safe haven, also fell.

Still, signs of worry were not far away. An index that tracks stock market volatility, known as VIX, fell on Monday in the United States but remains at historically high levels.

In Japan, the Nikkei 225 index fell 0.9 percent, but other markets in the Asia-Pacific region rose modestly. South Korea’s Kospi index rose 2.2 percent. In China, the Shanghai Composite index rose 0.1 percent. Hong Kong’s Hang Seng index was up 1.4 percent late.

In London, the FTSE 100 index opened 2.2 percent higher. German’s DAX index was up 2.7 percent, and the CAC 40 index in France was up 1.7 percent.

Stocks on Wall Street rose on Monday as investors bid up shares of health care companies as they reported progress on products that could help with the coronavirus outbreak.

The S&P 500 climbed more than 3 percent, adding to a strong showing last week. The S&P 500 had risen 10 percent last week after a three-day run that was its best since 1933, amid relief over Washington’s $2 trillion spending plan.

But there were lingering signs of caution in the financial markets. Most notably, oil prices tumbled to their lowest levels since 2002.

And in the stock market, Monday’s rally came on relatively light volume, said Matt Maley, chief market strategist at Miller Tabak, a trading and asset management firm. That suggests a lack of conviction among investors, he said.

“It’s a little bit of lack of confidence,” said Mr. Maley, “And you can’t blame them after what’s happened.”

In the oil market, brent crude, the international benchmark, fell more than 6 percent to roughly $26 a barrel on Monday. West Texas Intermediate, the U.S. benchmark, was down more than 5 percent with prices hovering around $20.25 in early afternoon trading. Earlier in the morning the price had briefly dropped below $20 a barrel, a level not seen in almost 20 years.

Zoom, the popular videoconferencing app whose traffic has surged amid the coronavirus pandemic, is under scrutiny by the office of New York’s attorney general, Letitia James, for its data privacy and security practices.

The attorney general’s office sent a letter to Zoom on Monday asking what, if any, new security measures the company had put in place to handle increased traffic on its network and to detect hackers, according to a copy reviewed by The New York Times.

The letter referred to Zoom as “an essential and valuable communications platform,” but it outlined several concerns, noting that the company had been slow to address security flaws such as vulnerabilities that have allowed malicious users to invade videoconferences held on the service, a practice known as Zoombombing.

Facebook and Twitter took down posts featuring Brazil’s president, Jair Bolsonaro, over the past two days after he claimed that the anti-malaria drug hydroxychloroquine was a “cure everywhere” for the coronavirus and called for an end to social distancing and shelter-in-place measures in Brazil.

Mr. Bolsonaro had posted the videos, which showed him talking to street vendors in the Taguatinga district of Brasília, Brazil’s capital, to Twitter, Facebook and Instagram on Sunday. The New York Times has reported that there is no proof that the drug is effective against the virus.

Twitter took down the videos on Sunday. The videos on Facebook and Instagram were taken down on Monday evening. The companies said the posts violated their policies for spreading misinformation that could also lead to physical harm.

But the moves were unusual for the tech companies, which have long been hesitant to remove posts from world leaders, even when they walk the line of disinformation. The companies have said posts from world leaders are newsworthy.

Twitter deleted a post by President Nicolás Maduro of Venezuela last week, in which Mr. Maduro promoted a “brew” that he claimed could cure coronavirus. President Trump has previously posted that hydroxychloroquine showed “tremendous promise,” which the social media companies said did not violate their policies because there was not a clear call to action that would cause the public any harm.

  • American Airlines plans to apply for some of the $50 billion airline bailout included in the federal stimulus that was signed into law last week, its chief executive and president said in a memo to staff. The airline expects to receive $12 billion, some of which will be used to pay employees through September.

  • Virgin Australia said it would ask for $1.4 billion Australian dollars ($866 million) in bailout money from the government.

  • Facebook announced on Monday that it would give out $25 million in grants to local news organizations and spend $75 million in marketing that will go to news outlets internationally. Campbell Brown, a Facebook vice president, acknowledged in an interview that the company, whose huge chunk of online ad revenue helped dent media companies’ business models in the first place, felt a “responsibility” to help out.

Reporting was contributed by Carlos Tejada, Davey Alba, Sheera Frenkel, Kate Conger, Ernesto Londono and Daniel Victor.



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