Breaking News Today

Stocks rise across global financial markets after glimmers of coronavirus hope

Published: (Updated: ) in Australian News by .

Global stock prices have jumped in markets around the world after some of the hardest-hit areas offered sparks of hope that the worst of the coronavirus outbreak may be on the horizon.

Global stock prices have jumped in markets around the world after some of the hardest-hit areas offered sparks of hope that the worst of the coronavirus outbreak may be on the horizon.

Stocks in the US climbed more than four per cent in the first few minutes of trading overnight, following up on similar gains in Europe and Asia.

In another sign that investors are feeling more optimistic about the economy's path, the yield on the 10-year Treasury rose toward its first gain in four days.

New coronavirus infections and deaths are showing signs of slowing in Spain and Italy.

The centre of the United States' outbreak, New York, also reported a dip in the number of daily deaths, though authorities warned it's too early to tell whether it's just a blip or the start of a trend.

The S&P 500 was up 4.4 per cent, as of 11.51pm AEST (9.51am local time) and on pace to erase all of its losses from the prior week, when the government reported a record number of layoffs sweeping the economy.

The Dow Jones Industrial Average rose 991, or 4.7 per cent, to 22,038, and the Nasdaq was up 4.3 per cent.

Markets have been waiting anxiously for signs that the rate of new infections may stop accelerating at some point.

The explosion of cases has caused businesses around the world to shut down, layoffs to soar and flights to cancel as authorities hope to slow the spread of the virus. The strict measures mean markets are bracing for a sudden, steep recession.

READ:  Scott Morrison reveals call with President-elect Joe Biden

But a peak in new cases would give some clarity on how long the downturn may last and how deep it would be. Until then, markets are grasping at guesses.

"Hundreds of people are passing away each day from the pandemic, but less so than previous days, giving markets hope that the lockdown measures are finally starting to prove effective," Jeffrey Halley of Oanda said in a commentary.

"Like the rest of the world, financial markets are searching for any slivers of hope."

The S&P 500 is still down more than 23 per cent since its record set in February, but the losses have been slowing since Washington promised massive amounts of aid to prop up the economy.

In Japan, the Prime Minister said on Monday that he's preparing to announce a 108 trillion yen ($1.6tn) package to bolster the world's third-largest economy.

It would be Japan's largest-ever package for the economy and nearly twice as much as expected.

Japan's economy was already shrinking late last year before the outbreak forced the global economy into a protective coma induced by health authorities.

The announcement pushed Japan's Nikkei 225 index to surge 4.2 per cent. Elsewhere in Asia, South Kora's Kospi jumped 3.9 per cent, and Hong Kong's Hang Seng rose 2.2 per cent.

In Europe, Germany's DAX returned 4.9 per cent and France's CAC 40 jumped 3.8 per cent. The FTSE 100 in London rose 2.4 per cent.

The yield on the 10-year Treasury yield rose to 0.66 per cent from 0.58 per cent late Friday. Yields tend to rise when investors are raising their expectations for economic growth and inflation.

READ:  Watch MasterChef Australia's Reynold Poernomo On Indonesian Version Of Cooking Show

Crude oil fell, giving up some of its huge gains from the prior week when expectations rose that Saudi Arabia and Russia may cut back on some of their production.

Demand for oil has plummeted due to the weakening economy, and any cutback in production would help prop up its price. A meeting between OPEC, Russia and other producers initially planned for Monday, though, was reportedly pushed back to Thursday.

For breaking news alerts and livestreams straight to your smartphone sign up to the 9News app and set notifications to on at the App Store or Google Play.

You can also get up-to-date information from the Federal Government's Coronavirus Australia app, available on the App Store, Google Play and the Government's WhatsApp channel.

Source: 9News

Share This
Finance Advice 2021