Global markets rebounded vigorously on Monday as silver soared, the latest episode of a speculative twist.
In Europe, the Parisian CAC 40 index recovered 1.16%, Frankfurt 1.41%, London 0.92% and Milan 1.17%. These indices had experienced their worst weekly drop last week since the US presidential election in early November.
In New York, the flagship index, the Dow Jones Industrial Average, rose 0.81%, the tech-heavy Nasdaq gained 2.29% and the broader S&P 500 index gained 1.54%.
“The fear that dominated the market last week has evaporated. The horde of retail investors that recently plunged into GameStop stock has turned its attention to money, ”observes David Madden, analyst at CMC Markets.
“The markets are in good shape probably because a single digit rise in the price of silver is less risky for some hedge funds than a forced liquidation of short positions in certain stocks,” he said.
The price of silver, which has seen a sudden surge since last weekend, potentially fueled by the same mechanisms that brought GameStop to the top, was nevertheless giving established investors a cold sweat.
The GameStop saga continued to animate the American market: the online brokerage app Robinhood, in the spotlight with the speculative frenzy around stocks like GameStop, confirmed on Monday that it had raised a total of $ 3.4 billion additional funds to meet demand.
Individual investors have “a real power of nuisance”, stress analysts at Aurel BGC, and concern remains about potential new targets of these web bettors.
In addition to current speculative episodes, market participants continue to monitor corporate earnings releases, developments in the US economic support plan and vaccine shipments.
Investors were able to rejoice in good macroeconomic data, in particular reassuring PMI indices in the euro zone and ISM in the United States.
Above all, the US Gross Domestic Product (GDP) should return to its pre-pandemic level by mid-2021, but it will be necessary to wait until 2024 to return to pre-crisis employment levels, according to updated projections from the budget departments. Congress (CBO) released Monday.
Around 5:30 p.m. (6.30 p.m. GMT), a barrel of Brent North Sea for April delivery gained 1.49% to $ 55.86. A US barrel of WTI for March delivery rose 1.53% to $ 52.99.
The greenback fell 0.53% against the single European currency, to $ 1.21 per euro.