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Stock markets rise on huge economic support plans

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AFP London
Last Updated : Mar 20 2020 | 7:54 PM IST

Global stock markets pushed higher Friday at the end of another volatile week, as weary investors welcomed a worldwide fightback against the coronavirus fallout by governments and central banks.

In the eurozone, markets jumped after the European Central Bank launched a vast stimulus this week, with Frankfurt, Paris, Milan and Madrid scoring gains of between 2 and 4 per cent.

London's stock market won about 2 per cent one day after the Bank of England slashed interest rates to a record-low 0.1 per cent and ahead of new UK state stimulus plans later Friday.

The dollar eased somewhat after a lengthy rally fuelled by traders cashing out of their investments, while the embattled oil market extended Thursday's gains.

US stocks rose at the opening bell, with the Dow adding 0.5 per cent in the first couple minutes of trading, as US authorities move forward with stimulus plans.

"The stock markets' upside is a result of a number of big bazookas fired off by central banks," Scope Markets analyst James Hughes told AFP, before sounding a note of grim caution.

"The markets hate uncertainty -- and we could not be in a more uncertain time," he added in reference to the COVID-19 pandemic that has killed more than 10,000 people around the world.

"So overall I feel markets may recover from here in the short term, but we must remember it has been a week where this crisis escalated in an immeasurable and unprecedented way. Who knows what next week has in store."

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First Published: Mar 20 2020 | 7:54 PM IST

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