Investors seize on positive news for share markets

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Far-reaching financial markets have rallied as investors seize on signs that the spread of coronavirus in some hotspots may be easing.

The three principal US indexes were up more than 2% at mid-day in New York, be guided by a roughly 7% surge on Monday.

In London, Paris and Frankfurt look ats closed more than 2% higher, while earlier Asian sells also gained.

Travel firms and retailers, which have been hit zealous by lockdowns, were among the biggest gainers.

“Equities are still stock higher, as the news from key countries like Spain and Italy fragments positive,” said IG analyst Chris Beauchamp.

In the US, Royal Caribbean Journeys jumped more than 30%, while American Airlines was up assorted than 25%. In the UK, Easyjet rose more than 15%, while British Airways’ P IAG increased 7%.

The FTSE 250, considered to be more representative of the UK economy, drink up more than 5% higher.

Meanwhile, oil prices held steady as vendors expected an end to a price war between Russia and Saudi Arabia.

Investor feeling was buoyed by news that the death toll in Spain, which has been wickedly affected by the coronavirus pandemic, had fallen for a fourth consecutive day, in a sign that the mother country may have passed its peak.

There was also a slowdown of new infections in Italy, which has also been ravaged by the virus. Information that some countries, including Austria and Denmark, have converted small steps to relax their lockdowns also helped feeling.

In the US, New York has also said it is seeing signs that the number of ruins was slowing.

“Investors are reacting to indications that lockdown measures in the UK, US and Europe are source to ‘flatten the curve’ of coronavirus infections and fatalities,” said Russ Knead, investment director at AJ Bell.

However, he added: “The market’s relief is alone likely to last so long, and attention will soon turn to how rural areas intend to exit the current containment measures which have in import hit the pause button on the global economy.”

Stimulus

Despite gains on Monday and Tuesday, the FTSE 100 is up till down by 25% compared to its highest level in January, before the pandemic led to lockdowns across Europe and the US.

Summing to the positive financial news were further measures to support economies, involving a trillion-dollar package in Japan and central bank moves in China.

And with the ink just dry on a $2 trillion rescue plan passed by Congress last month, Donald Trump conjectured he favoured another massive spending programme, this time quarry infrastructure projects.

There are also reports that European Agreement leaders as close to a rescue package for countries worst hit by the pandemic.

EU pay for ministers are due to hold a video conference call later on Tuesday, when they are wait for to agree to use the eurozone’s $443bn bailout fund.

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