PARIS | The stock markets have confirmed their rebound on Thursday, reassured by the support plans announced in Europe and the United States in the face of the spread of the pandemic, the sars coronavirus, as well as about the u.s. central bank.
After closing in the red in Asia, Europe crushed the red a large part of the day. But the european markets have finished by reversing the trend.
Paris has closed up 2.51 %, Frankfurt 1.28 % and London 2.24 %. Milan took 0.73% and Madrid to 1.31 %.
Green was also set in New York city. To 1440, the index featured Dow Jones Industrial Average gained 2,39 %, that of the expanded index S&P 500 of 4.6 %, and the Nasdaq, to the strong staining technology, 4,08 %.
The markets were doing as if the explosion in the number of new applications for unemployment benefits in the United States, with more than 3 million additional people — a historical record — and preferred to focus on the good news.
“The figure has been very bad, but it could be worse. The fact that he is gone out [consistent with] the latest expectations allows the market to maintain the cap of the rise seen over the past two sessions, was analysed with the AFP Andrea Tuéni, an analyst at Saxo Bank.
“Investors are full of hope about the rescue plan of the United States “, not to mention the fact that ” the G20 has issued an optimistic message concerning the crisis of Covid-19 “, said for his part David Madden, an analyst at CMC Markets.
A plan of economic aid “history” of 2 200 billion dollars was approved Wednesday night by the u.s. Senate. The objective is to inject funds on a massive scale in the first world economy to avoid a recession sustainable.
The plan must still be approved by the House of representatives, controlled by democrats, Friday, before being signed into law by the us president, Donald Trump.
In Germany, members of parliament, after years of fiscal discipline have also adopted a plan of rescue of “history” of nearly 1 billion and 100 billion.
The market has also been able to find support from the G20 leaders who announced Thursday their intention to inject “more than 5 000 billion dollars” in the global economy to ” counteract the impact of social, economic, and financial aspects of the pandemic “, during a summit virtual emergency.
The news from the side of central banks were also likely to reassure markets.
A severe recession
Just prior to the opening of spaces for the u.s., the boss of the Fed, Jerome Powell, is mounted once again on the line, to reassure the markets by promising that his institution will continue to lend “aggressively” to combat the economic impact of the epidemic.
And the Bank of England opted to keep its key interest rate at its historic low, holding a “sharp fall” of the world’s GDP in the first half of “likely” result of the pandemic of the Covid-19.
In spite of a containment that now involves more than 3 billion people, the balance sheet continues to mount with more than 21 000 victims in the world.
“In the United States, we only have two weeks of decline, with different reactions from one State to the other: California and New York have taken measures for containment, but the Texas, for example, refuses to do so “, stressed to AFP Daniel Morris, a strategist senior at BNP Paribas Asset Management.
“The situation is therefore still difficult to assess “, but, in view of the resulting falls suffered in recent weeks, “the market table already in a severe recession,” adds he.
If the stock markets were able to bounce back, the oil prices fell after three consecutive sessions of rise.
To 11: 50, a barrel of Brent North sea for delivery in may was worth 26,60 dollars in London, down by 2.88 % compared to the end of Wednesday.
In New York, the barrel american WTI for may lost 5,76 %, to 23,08 dollars.
And the euro continued to appreciate against the dollar. Around 11.50 am, the euro gained to 1.05% against the greenback, to 1,099 5 dollars.
On the debt market, the rate of the euro area countries have ended the day on a little relaxation.