European Markets Pick Up Baton from Asia as Big Rally Spread
Posted: Tue Jun 16, 2020 7:34 amTuesday’s big rally in Asia carried over into Europe as investors cheered new moves by central banks in the United States and Japan to help the global economy recover from the coronavirus pandemic.
The FTSE in London is up 2.5% at the midday trading mark, Paris’ CAC-40 index has risen 2.6%, and Frankfurt’s DAX index is soaring above 3%.
Tokyo’s Nikkei index led Asia’s big rebound earlier in the day, earning 1,051 points to finish the trading session 4.8% higher. The S&P/ASX index in Sydney was close behind, earning 3.9% at its closing bell.
Elsewhere in the region, Hong Kong’s Hang Seng index was 2.3% higher, and Shanghai’s Composite index had gained 1.4%. The Sensex in Mumbai was up 1.1%, while Taiwan’s TSEC was 1.8% higher.
The rebound was sparked by Monday’s announcement by the U.S. Federal Reserve that it would begin buying individual corporate bonds as part of its efforts to help the overall U.S. economy recover from the COVID-19 lockdowns that ground all economic activity to a halt. The announcement sparked a late rally on Wall Street, which had lost ground over fears of a second wave of coronavirus infections.
A man walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo, June 16, 2020.
Markets were also bolstered by the Bank of Japan’s decision to expand its corporate lending program and purchases of corporate bonds from about $700 billion to $1 trillion.
The Dow Jones, S&P 500 and NASDAQ continue to trend upward in futures trading Tuesday, indicating a positive opening for Wall Street.
Oil markets are rising, with U.S. crude trading at $37.72 per barrel, up 1.6%, while Brent crude oil is trading at $40.42 per barrel, up 1.7%