(FTSE 367 jumping 9% – the best day in a decade.
Markets have rallied in Asia today too, amid relief that governments and central banks are throwing their weight behind stimulus measures, as economic activity slumps .
Japan’s Nikei has surged 8% today, South Korea’s KOSPI has jumped nearly 6% and Australia’s S&P ASX has gained 5%.
Holger Zschaepitz (@ Schuldensuehner) Asia rides Wall St surge as investors place hopes on US stimulus. WH & Congress strike deal on a historic package that tees up $ 2tn in spending & tax breaks. European & US futures aided by US package as well. Bonds unch w / US (y at 0.) (%,) (y Bunds -0.) %, Gold , Bitcoin 6.7k pic.twitter.com/ULnDNxck5x
But this surely isn’t the end of the coronavirus pandemic? Older City heads will remember that bear markets often see such wild swings.
Investors really want to see signs that the medical crisis is being brought under control – and we’re a long way from that position in the UK, the rest of Europe, or America (where president Trump is keen to end lockdowns despite medical warnings).
So the markets will probably remain volatile for a while.
As Jasper Lawler of London Capital Group puts it:
Two ways it could easily all go pear-shaped ) is 1. The virus spread just gets out of hand and / or 2. The stimulus isn’t enough to give the economy a shot in the arm after being laid comatose in lockdown.
Trump would like to see US ‘reopen’ by Easter Sunday on April 30, which seems optimistic.
Today we learn how UK inflation changed last month, how much retail sales have fallen this month, and how badly German business confidence has been damaged by the crisis
7am GMT: UK inflation for February
9am GMT: IFO survey of German business confidence in March 029 am GMT: CBI’s index of UK retail sales in March
Updated (at 3.) am EDT Read More
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