Stocks surge on hopes that central banks will shelter the global economy from virus impact
The Dow Jones Industrial Average closed the day’s session at 26,703, up 1,293 points, or 5.1 percent, from previous trading
In New York, stocks have surged on Monday as traders hope that central banks will take action to help shelter the global economy from the effects of the coronavirus outbreak.
The Dow Jones Industrial Average closed the day’s session at 26,703, up 1,293 points, or 5.1 percent, from previous trading. That’s the largest one-day gain ever.
Money managers hope central banks will take coordinated action to deal with the virus scare after statements to that effect from both the US Federal Reserve and the Bank of Japan.
BOJ Governor Haruhiko Kuroda issued a statement on Monday, saying it is ready to provide plenty of funds and do what’s needed.
The BOJ’s announcement followed a similar one on Friday by the US Federal Reserve. Fed Chair Jerome Powell acknowledged the risks posed by the coronavirus.
Last week, the Dow suffered a weekly loss of more than 3,500 points amid fears about the outbreak’s economic impact. US media said it was the worst week since the financial crisis in 2008.
US President Donald Trump renewed his call on Monday for the US central bank to cut interest rates, saying Jerome Powell and the Fed are slow to act as usual.
He said on Twitter, “Germany and others are pumping money into their economies. Other Central Banks are much more aggressive. The US should have, for all the right reasons, the lowest rate.”
On the European stock markets on Monday, stock prices rose in London and Paris.
But in Milan, where the number of people infected with the new strain of coronavirus is increasing, its stock market index fell about 1.5 percent from the end of last week.