Global stocks stabilise as governments look to limit economic fallout from COVID-19
Global equities edged higher on Friday as governments and central banks ramp up efforts to limit the economic impact of the coronavirus outbreak.
Global stocks stabilised on Friday after governments and central banks stepped up efforts to limit the spread and the economic impact of COVID-19.
The S&P 500 climbed 3% higher on Friday morning, finding support after suffering its worst day of trading since 1987 on Thursday. The Nasdaq Composite and Dow Jones are also trading 2% higher.
But despite Friday’s gains, the S&P 500 remains on course to suffer its worst week since the 2008 financial crisis.
US stocks and treasury yields were bolstered by after the Federal Reserve announcing it would buy $37 billion worth of bonds and President Donald Trump gearing up to declare a national emergency to combat the spread of the coronavirus.
European equities fight back
European stocks also found support on Friday after the Bank of England, European Central Bank and the German government acted to shore up financial markets and protect their respective economies from the COVID-19 outbreak
The FTSE 100, CAC 40 and DAX all closed higher on Friday. However, all three indices fell by more than 14% over the course of this week.
Looking to trade global stocks and other asset classes? Open a live or demo account with IG.
In China, the SSE Composite Index and Hong Kong’s Hang Seng closed 1% lower on Friday, with the pair down 4% this week. In response, China’s central bank said it would inject $79 billion to help its economy weather the fallout from the coronavirus outbreak.
Even though global equities have stabilised on Friday, the reprieve is likely to be brief however, with market volatility expected continue next week as coronavirus cases continue to rise around the world putting added strain on businesses.
You can go long or short various asset classes with IG using derivatives like CFDs.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
