European stock market indexes have shown signs of recovery this morning with a 6.86% gain in the FTSE 100 after the worst day since October 1987.
Spain’s stock index has also enjoyed a fruitful morning with a 10.98% move to the upside as the global sell-off begins to ease.
The increase in global markets has been spurred by economic stimulus from the world’s major economies coupled with China’s announcement that the ‘peak’ of coronavirus is over.
The Federal Reserve in the United States revealed that they were injecting $1.5 trillion to provide liquidity and to reduce the potential of a major recession.
China’s declaration that the peak of COVID-19 is over will also undoubtedly spur optimism in the likes of Europe and North America with the virus seemingly spreading at an alarming rate.
The S&P500 remains 27.19% down from its all-time high in February, although futures markets expect it to rise by 8% as trading opens later today.
It isn’t just traditional markets that have recovered this morning, Bitcoin has bounced by more than 50% after suffering the worst daily candle in its 11 year history.
It’s worth noting that while the market seem to be in a positive posture this Friday, coronavirus developments over the weekend could cause continuation to the downside on Monday depending on the number of cases and mortality rate.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.