Stocks rise as governments throw kitchen sink at virus

Mar 20, 2020: Beaten-down European and US stocks rose Thursday, as markets weighed massive government stimulus efforts against early indicators of what is expected to be a deep and painful economic downturn.

Wall Street equities finished a volatile session higher, with the Dow finishing up one percent as the Federal Reserve unveiled additional measures to boost liquidity and as Capitol Hill pushed ahead with massive stimulus, with Senate Republicans unveiling a plan for $1 trillion in fiscal spending.

But fresh US data showed a spike in jobless claims and major drop in manufacturing activity.

European bourses also had one their best days in the last couple of weeks following an announcement by the European Central Bank of 750 billion euros to fund “emergency” bond purchases.

The Bank of England came back with its second interest rate cut within days and unleashed its “biggest ever one-off round of asset purchases,” said Kallum Pickering, senior economist at Berenberg.

Oil prices pushed higher, bouncing after suffering an historically big drop in the prior session.

AFP/APP

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