Global stock markets have risen due to the latest efforts by the US Federal Reserve to support the economy, after global economies over the past few weeks have struggled.
The European market jumped with the continent’s Stoxx 600 index rallying 4 per cent.
London’s FTSE 100 rose more than 3 per cent, while Frankfurt’s Dax advanced 5.3 per cent. The rally in Europe followed significant increases in Asia in response to the Fed’s pledge to buy an unlimited number of bonds.
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US stock futures markets pointed to a 4.8 per cent rise for the S&P 500 benchmark later in the day, following a near 3 per cent loss in the previous session.
The dollar, which has surged amid the coronavirus crisis, weakened allowing the British pound to rise 1.5 per cent to $1.1725.
However, a sustained rebound for global markets appears unlikely, with investors pointing to few signs the Covid-19 outbreak is slowing and a $2tn US fiscal package that still hasn’t been approved in Congress.
Sovereign bond markets were little changed, with the 10-year US Treasury yield up 0.04 percentage points to just over 0.8 per cent. The price of Brent crude rose 5 per cent to just over $28 a barrel.