Global stock markets posted strong gains for a second straight session Tuesday as investors seized on signs of a slowdown in the spread of the coronavirus, while some governments began making plans to ease restrictions.
"Investors are betting that the coronavirus outbreak may have peaked and are ignoring the economic slump that we are in," said Fawad Razaqzada, an analyst with Trading Candles.
But Razaqzada also said he "wouldn't be surprised if the rally were to end abruptly because the economic impact of COVID-19 is going to be severe".
In the meantime, oil was energised by hopes that key producers will agree to cut output at this week's emergency OPEC+ video meeting, which will address virus-sapped demand and a price war.
Following on from gains in Asian and European equities, Wall Street also posted solid gains shortly after the opening bell, with the DJIA up more than 800 points.
"Equities are still racing higher, as the news from key countries like Spain and Italy remains positive," said IG analyst Chris Beauchamp. "Stocks continue to rally as investors look for the positives in the current global outlook."
Tokyo, Hong Kong and Shanghai stocks all finished around two per cent higher.
After the close in Japan however, Prime Minister Shinzo Abe declared a month-long state of emergency in the capital and six other parts of the country over a spike in virus cases.
Adding to the positive vibe were further measures to support economies, including a trillion-dollar package in Japan and central bank moves in China.
And with the ink barely dry on a USD 2 trillion rescue plan passed by Congress last month, Donald Trump said he favoured another massive spending programme -- again roughly USD 2 trillion -- this time targeting infrastructure projects.
The head of the Eurogroup of eurozone finance ministers on Tuesday called for a major rescue plan, as EU members squabble over what is needed to rebuild the shattered economy.
Mario Centeno, who is also Portugal's finance minister, called for a "bold response" ahead of a videoconference with his counterparts.
However, analysts do not believe that a proposal to issue "coronabonds" -- that would pool borrowing among EU nations -- is going to gain any traction.
"The inability of eurozone ministers to agree on the subject of coronabonds is a clear sign of disharmony in the region," cautioned Rabobank analyst Jane Foley.
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