It is unbelievable that despite the Covid depression, stock market has been going up nearly everyday. According to Peter Switzer, a Sky News contributor, stock market is doing well despite the recession of the Great Depression. Indeed, it can be seen that stocks still continue to soar high no matter what.
Accordingly, Australian dollar together with ASX jump as Nasdaq hit high record in hopes of economic recovery past Covid19 pandemic. In fact, despite of US’ official declaration of recession, still stocks has been doing well. Specifically, some of the best performing stocks are the Virgin Money UK (+16.4pc), Credit Corp (+15.7pc) and Worley (+14.6pc).
Stock market status is also reflected on the bank and mining performances. As a matter of fact, banking stocks was also boosted leaded by Bank of Queensland (+8.9pc), Bendigo and Adelaide Bank (+9.4pc) and four others. Mining is also noted to have performed well with 4.9 per cent surge in iron ore prices. And so, no Covid could really affect the rising of the stocks’ value.
In addition to that, due to the “work from home” scheme as suggested due to the virus, officeworks sales has boosted to 28 percent. According to Wesfarmers, sales are seen to increase for the coming weeks as people will be demanding more winter clothing. Online orders has boosted up the sales of Kmart, a Discount department store, due to their online sale platforms available for the online shoppers. Certainly, consumers have adjusted their buying habits based online in compliance to the social distancing protocols. Predictably, sales are seen to continue rising as some restrictions were already lifted and as people also readjust with their buying scheme – all the way helping boosting up the economy as well.
As the economy tries to recover, the value of Australian dollar continues to soar high as it is supported by higher commodity prices and more economic activities recover. It can be seen that Nasdaq really played a very important role in the economic fight of Australia. When the Covid affected the stock late March, economy really hit hard at the bottom, but with the help of the technology and communications stocks, it has risen. Specifically, technological stocks including Facebook and Amazon have helped in the rise of the digits.
While the rest of the world is struggling with this recession, Australia is leading in the recovery as stocks boost up with technology and communication.