Thu, 09 Apr 2020

Global Markets Surge as US Agrees on Virus Rescue Deal

Voice of America
26 Mar 2020, 05:05 GMT+10

Global stock indexes surged Wednesday as U.S. government leaders agreed on a $2 trillion rescue package for the world's largest economy to combat the worsening economic effects of the deadly coronavirus.

Japan's Nikkei index jumped 8% following massive gains Tuesday in New York, when the widely watched Dow Jones Industrial Average of 30 key U.S. stocks jumped more than 11%, its biggest one-day gain in 87 years.

But as Wednesday trading moved to Europe and the U.S., the results were more measured until later in the day.

In the end, indexes in London and Paris finished ahead by more than 4%, with Frankfurt gaining nearly 2%.

In New York, the Dow advanced by more than 4% in mid-afternoon trading with the broader S&P 500 up more than 3% and the technology heavy NASDAQ index gaining more than 1%.

Tuesday's robust gains in the U.S. and Europe and Wednesday's boost in Asia were buttressed by the U.S. Congress finalizing work on the massive $2 trillion aid package to U.S. businesses and most Americans to offset the disruption to corporations slowed or shut down by the coronavirus pandemic.

It was the largest-ever government investment in the U.S. economy, the world's largest, but also one that has been buffeted by the growing spread of the virus.

Uncertainty about the virus and its economic toll have rattled markets for weeks, especially the last month. Stock prices have fallen sharply, while governments and central banks have rushed to cut benchmark interest rates and inject money into national economies to support businesses and help consumers regain their economic footing.

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