Stock markets fight back: FTSE 100 up 16.5% in 3 days
Stock markets soared for a third day as an unprecedented rise in unemployment in the United States fuelled hopes that a more aggressive economic stimulus package was on the way to support the economy as coronavirus spreads.
On another day of drama on trading floors around the world, the FTSE100 rose 2.2 per cent or 127.53 points to 5815.73 – taking gains in the past three sessions to 16.5 per cent – while the Dow Jones Industrial Average was up more than 6 per cent on Wall Street.
Sterling also continued its rally against the dollar, rising more than 2 per cent towards $1.22 having last week crashed to a 35-year low below $1.15.
The surge in share prices came despite a record increase in the number of Americans claiming unemployment benefit as the pandemic hammered the world's largest economy.
With fears over the health of the global economy intensifying, a United Nations official warned that the number of jobs lost around the world due to Covid-19 would be 'far higher' than the 25m estimated just a week ago.
The deepening economic crisis fuelled speculation that governments and central banks around the world will take further action to support businesses and families hit by the pandemic - boosting share prices.
Quincy Krosby, chief market strategist at Prudential Financial in New Jersey, said if the jobs numbers continue 'there will be demand for more fiscal support'.
She said the rise in share prices suggested that investors 'expect a larger stimulus package from ...
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