Global stocks stabilise as governments look to limit economic fallout from COVID-19
Global equities edged higher on Friday as governments and central banks ramp up efforts to limit the economic impact of the coronavirus outbreak.
Global stocks stabilised on Friday after governments and central banks stepped up efforts to limit the spread and the economic impact of COVID-19.
The S&P 500 climbed 3% higher on Friday morning, finding support after suffering its worst day of trading since 1987 on Thursday. The Nasdaq Composite and Dow Jones are also trading 2% higher.
But despite Friday’s gains, the S&P 500 remains on course to suffer its worst week since the 2008 financial crisis.
US stocks and treasury yields were bolstered by after the Federal Reserve announcing it would buy $37 billion worth of bonds and President Donald Trump gearing up to declare a national emergency to combat the spread of the coronavirus.
European equities fight back
European stocks also found support on Friday after the Bank of England, European Central Bank and the German government acted to shore up financial markets and protect their respective economies from the COVID-19 outbreak
The FTSE 100, CAC 40 and DAX all closed higher on Friday. However, all three indices fell by more than 14% over the course of this week.
In China, the SSE Composite Index and Hong Kong’s Hang Seng closed 1% lower on Friday, with the pair down 4% this week. In response, China’s central bank said it would inject $79 billion to help its economy weather the fallout from the coronavirus outbreak.
Even though global equities have stabilised on Friday, the reprieve is likely to be brief however, with market volatility expected continue next week as coronavirus cases continue to rise around the world putting added strain on businesses.
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