HSI and ASX futures suggest both indices will open higher

Hang Seng and ASX 200 futures are trading 4% higher Thursday morning suggesting that both indexes will rally in early trading.

Prior to the market opening, Hang Seng futures is trading more than 900 points higher, while S&P/ASX 200 futures is up more than 200 points.

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Hang Seng and ASX 200 close higher on Wednesday

Both the Hang Seng Index (HSI) and ASX 200 closed on a high on Wednesday, with the pair ending the day’s trading session up 3.8% and 5.5% respectively.

Both indices had a tough start to the week, with the pair sinking 4% lower on Monday. However, with government and central bank intervention around the world helping to stabilise financial markets, the HSI and ASX 200 are up 3% and 1.5% so far this week.

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European stocks close higher and US equities extend gains

European equities closed higher on Wednesday, with the Euro Stoxx 50, DAX and CAC 40 all ending the day in positive territory.

In the US, the Nasdaq Composite, S&P 500 and Dow Jones Industrial Average indexes are trading 2%, 4% and 6% higher respectively – extending Tuesday’s gains.

The rally in European and US equities is largely driven by American politicians’ approval of a $2 trillion coronavirus stimulus deal – the largest in the country’s history. The rescue package aims to protect people and businesses from the economic impact of the pandemic.

‘At last, we have a deal,’ Republican Senator Mitch McConnell said after the bill was passed early on Wednesday morning. ‘In effect, this is a wartime level of investment into our nation.’