FILE PHOTO: The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York CityMore
LONDON (Reuters) – Shrugging off reams of terrible economic data, plunging oil prices and dire corporate profits, world stocks have recouped around half of this year’s coronavirus-linked losses as investors flip over their calendars to bet on a strong recovery in 2021.
Trillions of dollars in stimulus from governments and central banks and moves to start re-opening businesses are contributing to the bounceback. While oil languishes near multi-decade lows, it might well be the cheap fuel that powers the upcoming recovery.
The most hopeful sign is the decline in volatility.
Street’s fear gauge, the Cboe volatility index as well as Euro STOXX volatility have steadily