LONDON: Global stock markets posted strong gains for a second straight session on Tuesday as investors seized on signs of a slowdown in the spread of the coronavirus, while some governments began making plans to ease restrictions.
“Investors are betting that the coronavirus outbreak may have peaked and are ignoring the economic slump that we are in,” said Fawad Razaqzada, an analyst with Trading Candles.
But Razaqzada also said he “wouldn’t be surprised if the rally were to end abruptly because the economic impact of Covid-19 is going to be severe”.
In the meantime, oil was energised by hopes that key producers will agree to cut output at this week’s emergency Opec+ video meeting, which will address virus-sapped demand and a price war.
Following on from gains in Asian and European equities, Wall Street also posted solid gains in the late New York morning when the Dow was up by more than 600 points.
Published in Dawn, April 8th, 2020