Wall Street got a lift from encouraging information coming out of markets abroad, CNBC’s Jim Cramer said Tuesday.
“Today our market was saved by strength overseas, for the first time in a long time. China and Europe bailed our stock market out,” the “Mad Money” host said. “I’ll take it.”
Despite the growing strife between the White House and those protesting police brutality nationwide, the American market caught a boost from a rally in the German market on a potential European stimulus measure, Cramer noted. Investors were also feeling bullish on the growth that China is seeing in auto sales and iron and copper, he said.
President Donald Trump on Monday threatened to mobilize the military if state and local governments fail to clamp down on civil unrest rocking the nation in reaction to the death in police custody of George Floyd, an unarmed black man, in Minneapolis more than a week ago.
Market players, however, are keeping an eye on international markets to gauge the global economic recovery after a coronavirus pandemic brought world commerce to a near halt the past three months. The U.S. is in the midst of reopening its economy after spending months on lockdown to slow the spread of Covid-19.
“If the rest of the world’s in better shape, well, that is fantastic news for our companies that do lots of business overseas, and … it absolutely overshadows what’s happening here,” Cramer said.
The European Union announced a plan in late May to borrow 750 billion euros ($826.5 billion) to fuel the economy out of the worst crisis it’s seen in several decades. The DAX, Germany’s Dow Jones equivalent, rose 3.75% on Tuesday as investors anticipate the reopening of economies.
Copper prices rose in May for the second month straight in anticipation of a rebound in China, the top buyer of copper around the globe. Additionally, analysts at Bank of America last week upped their price target for copper in 2020 by 5.4%.
“That’s huge, because copper’s a tremendous barometer of global economic activity. The biggest market in the world for copper is China,” Cramer said.