Wall St. drives global stocks higher on hopes of $2 trillion stimulus;US Dollar falls

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Wall St. drives global stocks higher on hopes of $2 trillion stimulus;US Dollar falls

On Thursday, the 26th of March 2020, a gauge of global stock indices including the Wall St. alongside a bundle of European stock exchanges rounded off the day higher over optimism of a $2 trillion stimulus which was passed in the US Senate on Thursday (March 26th) and a bipartisan vote over the proposed stimulus would likely to take place on Friday (March 27th), said US House Speaker Nancy Pelosi.

As a matter of fact, Thursday’s (March 26th) rally in the global stocks came forth shortly after the US Labour Department data had revealed a record 3.28 million in initial jobless claims last week that eclipsed a previous record of 665,000 set in the 1982s, while investors appeared to be betting heavily on further policy easing and monetary stimulus amid a record surge in US initial jobless claims, which eventually had prodded Thursday’s (March 26th) havoc-scale surge despite a coronavirus-led recession breathing fire over the global economy.

Meanwhile, spurring up investors’ hope for further monetary stimulus apart from a whopping $2 trillion aid package being assembled in the US Congress, a head of macro analyst at Saxo Bank, Christopher Dembik wrote in a client note on Thursday (March 26th), “In less than two weeks, we have moved from full employment to a number of job destruction we have never experienced in a period of peace,” while a chief market strategist at Prudential Financial in Newark, New Jersey, Quincy Krosby said on Thursday’s (March 26th) market closure, “If these numbers continue for three or four weeks, there will be demand for more fiscal support.

The stock market reaction would suggest that market participants expect a larger stimulus package or fiscal package from the government than the $2 trillion that has been agreed upon. ” Citing statistics, on Thursday’s (March 26th) market wrap-up, the regional pan-European STOXX 600 gained 2.55 per cent, while the MSCI’s gauge of global stocks across the globe that keeps track of 49 stock exchanges gained 4.62 per cent.

Besides, in the Wall St., the Dow gained 6.38 per cent to 22,552.17, S&P 500 surged 6.24 per cent to 2,630.07, while the tech-heavy Nasdaq rose by 5.6 per cent to 7,797.54. Meanwhile, the King Dollar eased on Thursday (March 26th), while euro gained 1.41 per cent to $1.1033 against its American counterpart, safe-haven Japanese Yen added 1.49 per cent to 109.60 per dollar and the pound sterling reported its biggest intra-day gain against the US Dollar in three years to $1.2189.