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Markets extend rally despite Beijing’s new coronavirus outbreak

by LLB Editor
17th Jun 20 12:06 pm

Markets continued to rally in most of the UK, Europe and Asia following yesterday’s strong session. However, the sustainability of the rally is uncertain given a second wave of coronavirus in Beijing, China.

Many flights in and out of Beijing have been cancelled following a new Covid-19 outbreak. Any evidence that China can’t get the situation under control would be very negative for markets.

For now, investors seem to be happy to keep buying equities with the FTSE 100 up 0.4% to 6,265, Germany’s DAX index up 0.2% and Hong Kong’s Hang Seng rising 0.3%.

“The UK market was led by the utilities sector thanks to better than expected results from SSE, itself rising 8.6%. Healthcare and telecoms were also in demand,” says Russ Mould, investment director at AJ Bell.

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