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  • The S&P 500 added 0.8% to end at around 3,081.
  • Dow Jones Industrial Average added 268 points, or 1.1%, to finish near 25,743. 
  • The Nasdaq Composite finished around 0.6% higher at 9,608.

The US benchmarks have continued higher despite the riots in the country and prospects of a break down in US and Chinese relations. Instead, optimism continues to grow each day goes by that there are not irregular spikes in new coronavirus cases as governments around the world seek to the get the global economy on track by relaxing social distancing measures. 

Consequently, stocks finished higher on Tuesday. The S&P 500 added 0.8% to end at around 3,081 while the Dow Jones Industrial Average added 268 points, or 1.1%, to finish near 25,743. The Nasdaq Composite finished around 0.6% higher at 9,608.

US protests update

Attorney General William P. Barr issued a statement on Tuesday saying that “there will be even greater law enforcement resources” deployed in Washington in the Tuesday evening.

“The most basic function of government is to provide security for people to live their lives and exercise their rights, and we will meet that responsibility here in the nation’s capital,” Mr. Barr said. He called Monday evening “a more peaceful night in the District of Columbia.”

Meanwhile, in the latest news, the US Senate Republicans blocked the Democrats’ move to ‘condemn’ president Donald Trump for use of force against peaceful demonstrators in Washington.

Positives seeping through

Central banks are keeping the bid alive as well and there were expectations that the ECB will expand its pandemic response programme. Also, positive Brexit headlines played their roll in keeping spirits up amongst financial markets. Analysts at ANZ Bank explained:

The ECB has spent EUR234.7bn on its pandemic emergency funding programme (PEPP). Italian debt accounts for EUR37.4bn while bond purchases in Germany accounts for just under EUR50bn. The average maturity of the bonds purchased is 6.3 years. The ECB also spent EUR35.4bn on commercial paper, 80% of which were acquired in the primary market. This equates to spending about EUR23.5bn per week, which at the current rate, would run out by October. There is an expectation that the ECB may expand its PEPP programme. Adding an additional EUR250+bn would ensure the ECB can maintain the current level of purchases until year-end, in line with the ECB’s guidance.

UK Prime Minister Boris Johnson will meet with EC President Ursula von der Leyen before the end of June to try to get the Brexit talks back on track. Johnson remains adamant that a deal will be reached before the transition period runs out at the end of the year. The transition period can be extended for a further two years, however to that a request must be made before July 1.

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