Sentiment was boosted after a simple, cheap steroid, dexamethasone, used to reduce inflammation in other diseases such as arthritis, reduced death rates by around a third among the most severely ill COVID-19 patients admitted to hospital.
The global economy appears to be recovering notably from the worst quarter in decades. Earlier in the day, China announced it expects the country to be back at 90% flying capacity over the next weeks.
“There is little doubt that the global economy bottomed in April and is poised to post record-high growth rates over May and June, strongly lifting 3Q GDP above its 2Q trough,” wrote economists at JPMorgan. “But questions about the extent of lasting damage will have to wait for a number of months before being resolved.”
The FX market showed little volatility today, which is nothing new, while oil and metals were somewhat lower as sentiment worsened in the afternoon.