Stock market rally at Dow Jones record high of 30,000 | Business

The Dow Jones Industry Average first crossed the 30,000 mark when financial markets around the world clashed with hopes of a coronavirus vaccination and a smooth transition to Joe Biden’s presidency.

The Wall Street market is a milestone as investors, with rapid medical advances, end the Covid epidemic sooner with fear, paving the way for a rapid economic recovery next year as business moves closer to normal and tough government restrictions.

The meeting will also take place after the U.S. General Services Directorate (GSA) has declared Bident the apparent winner of the U.S. election, clearing the way for a formal transition from the Donald Trump administration, ending weeks of uncertainty and delay.

Nevertheless, Trump quickly asked for credit for the meeting. “It’s a sacred number, 30,000. No one thought they’d ever see it,” he said at an extremely short press conference. “This is the 48th time we have broken records under the Trump administration.”

He then congratulated his administration and “most importantly: the people of our country”.

Trump fails to answer questions or formally agree to a strange 90-second briefing – video

Despite coronavirus infections soaring worldwide, the Dow garnered more than 450 points – about 1.5% – on Tuesday, closing above 30,000 for the first time.

Other major stock markets have also appreciated. It jumped in recent weeks after major pharmaceutical companies reported promising developments as a result of Covid vaccination trials, with FTSE 100 gaining about 1.6%, up 100 points, and closing Day 6432.

The leading index of UK corporate stocks marked the best week of April earlier this month, after Pfizer / BioNTech said the Covid vaccine was 90% effective in protecting people from the spread of the virus in global trials.

Dow Jones

The UK blue-chip index is more than 1,000 points behind the beginning of the year, reflecting the extent of the Covid recession in the UK. In contrast, U.S. stock markets were boosted by significant gains for U.S. technology companies that benefited from the transition to online work and shopping during the pandemic.

Vaccine updates from Oxford University and AstraZeneca further broadened the demonstration this week amid hopes for a rapid economic recovery next year. However, the market value of the UK’s largest pharmaceutical company has fallen more than £ 4bn since Monday’s announcement after reporting lower efficiencies than other major vaccine manufacturers.

European markets also extended Tuesday’s rally, with French CAC 40 and German DAX up more than 1.2% on Tuesday. Oil prices have soared amid speculation that a rapid economic recovery could boost global energy demand, with U.S. oil prices hitting $ 45 a barrel for the first time since March.

What is FTSE 100?
The FTSE 100 is an index of the 100 largest companies listed on the London Stock Exchange, measured by their market value or capital value. The total value of the companies that make up the FTSE 100, often referred to as ‘blue chip’ businesses, is currently around £ 2 trillion; about 80% of all listed companies in the UK. FTSE 100 was founded in 1984 as a joint venture between the Financial Times and the LSE.

What are the benefits of being included in the FTSE 100?
London is one of the largest financial centers in the world and has a significant advantage in being the capital’s main market. The benefits of blue chip companies include an increased profile, especially internationally.

It is still seen by many as a substitute for business in the UK, although in fact the FTSE 250 indicator is more specific to domestic companies, as around 75% of the income of FTSE 100 companies comes from abroad.

Gaining a spot in the FTSE 100 could improve demand for the company’s stock, as some investors are more comfortable investing in companies in the blue chip index. You can also help raise capital.

Several funds are linked to the FTSE 100. These passive, low-cost investments, called tracker or index funds, do not use high-paid fund managers to select stocks, but invest in the components of a major stock market index to track its performance.

Why should a company be excluded from the FTSE 100?
The declining stock price is the main reason companies are downgraded from the index as it reduces its value. Companies are also removed from the index when they are taken over and no longer have a separate listing.

I don’t have shares – why does the FTSE 100 matter to me?
The FTSE 100 affects most people even if they do not invest directly, as pension funds are often linked to the main market and its performance has a direct impact on returns.

What are the rules under which companies are promoted and demoted in each quarterly review?

There are a number of rules in place to ensure that the turnover of firms leaving the main index and entering on a quarterly basis is not constantly evolving.

All companies outside the FTSE 100 with a market capitalization of 90 or better in the main market have a guaranteed promotion.

In contrast, any firm that occupies a position of 111 or lower is automatically downsized. Depending on how many companies automatically meet these criteria at each quarterly review, the main market is “balanced” to reflect the total number of 100 listed companies.

Russ Mold, head of investment at Manchester-based stockbroker AJ Bell, said: “Oil is behaving like an economic bell and the commodity has come under tears over the past month, rising in value by more than 20% as markets start to grow. optimistic amid news about the positive vaccine about economic activity. “

The gains come when investors speculate that protracted political uncertainty over U.S. election results will gradually end after the GSA has launched a formal transfer of power to allow Biden to take over the presidency in January.

It is in stark contrast to Trump’s claim that a Biden victory would cause a stock market crash. Hoping for a smooth change of power, the Covid vaccination program, and a rapid economic recovery, the S&P 500 benchmark has been at its best since November.

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Analysts say there is growing hope that the next administration will be able to cope with the Covid-19 epidemic, stimulate economic recovery and adopt a new stimulus package to relaunch growth in the world’s largest economy. Investors are also pleased that Janet Yellen, former head of the U.S. Federal Reserve, is lining up to be the next U.S. Secretary of the Treasury.

Joshua Mahony, chief market analyst at financial trading firm IG, said: “With economic data improving, a vaccination on the road, and another stimulus led by Biden on the horizon, there are plenty of reasons to be optimistic months in advance. “