European stocks advanced on Tuesday as global markets reflect positive investor sentiment that an economic recovery, following the pandemic, is not too far away.
The pan-European Stoxx 600 climbed 1% in early trade, with autos adding 2.5% to lead gains as all sectors and major bourses entered positive territory.
Globally, investors are keeping an eye out on further signs that economic recovery following the coronavirus pandemic is not too far away, as vaccination rollouts continue and new infections and fatalities start to slowly decline amid lockdowns.
Early this Tuesday morning,2nd of February, U.S. stock futures rose after the equity market kicked off the week with a bounce-back session. Market focus remains on the retail trading frenzy that has taken place over the last couple of weeks in stocks shorted by hedge funds.
A handful of stocks, and then silver, have been the focus of short squeezes, with strategists wondering which stocks could be next. Shares of GameStop, fresh off a 400% rise last week, slid 30% on Monday and continued to fall during after-hours trading. The price of silver also jumped following increased chatter among traders on social media last week.
Stocks in Asia-Pacific rose in Tuesday trade following the overnight jump on Wall Street. Coronavirus news remains a key driver of market sentiment. The Japanese government is reportedly set to announce an extension till March 7 of the state of emergency covering Tokyo and other regions struggling to contain coronavirus outbreaks.