NEW YORK, United States – Global stock markets rose on Thursday, April 9, as investors welcomed data suggesting the coronavirus epidemic was about to peak.
Encouraged by another massive intervention by the Federal Reserve, Wall Street ignored a devastating jobs report showing that weekly unemployment deposits in the United States reached 6.6 million, with the Dow closing 1.2%.
Fed Chairman Jerome Powell predicted Thursday that the United States would experience a “robust” recovery once the coronavirus is under control, and announced $ 2.3 trillion in new loan programs to support the largest economy in the world. world.
A warning of the worst crisis since the Great Depression by the head of the International Monetary Fund, Kristalina Georgieva, who said that “global growth will become strongly negative in 2020” did not prevent investors either.
Although more volatility is expected in the coming days, JJ Kinahan, chief market strategist at TD Ameritrade, was optimistic: “We will get through this and when we do, people will pick it up. work fairly quickly. “
European stock markets were up sharply at the close, albeit out of the best of the day, and the finish on Wall Street was its second consecutive day of gains. Most Asian stock markets closed higher, except Tokyo.
“Despite some pretty dreadful statistics on coronaviruses, marketers are optimistic that the epidemic is nearing its peak and that governments will deploy more stimulants,” said Fiona Cincotta, analyst at City Index.
However, the oil sank because talks between the main crude producing countries to support oil prices did not lead to any agreement.
Countries held crucial teleconference to cope with collapse in demand for oil caused by coronavirus and damaging price war between Saudi Arabia and Russia, seen as the best chance to raise crude prices .
As prices began to rise, oil prices jumped to more than 10%, but then calmed down as prices fell in New York trade.
The Fed’s “steroids”
Meanwhile, the dollar has weakened at the prospect of an increasingly sagging liquidity around the economy.
While Vix’s “fear index” has halved from levels seen in mid-March, observers remain cautious, with health experts pointing out that any premature loosening of restrictions could accelerate the spread of the virus.
The economic balance sheet of the crisis is becoming more and more obvious, France is now in recession after having suffered its worst contraction since 1945 and Germany, the European power, should decrease by a tenth in the 2nd quarter of the year. (READ: France and Germany face historic economic declines)
Despite this, European Union leaders are struggling to agree on a bailout to support the region, with a major stumbling block being the so-called coronabonds who would pool debt between nations. – Rappler.com