Calm returns to markets after share turmoil
Stock markets in Europe have opened
higher following Monday's plunge, when shares saw the biggest falls
since the 2008 financial crisis.
London's FTSE 100 share index rose more than 3% after having sunk 7.7% in the previous session.Markets were battered on Monday in reaction to the threat of an oil price war between Russia and Saudi Arabia.
But after falling as much as 30% on Monday, oil prices also saw some recovery, with Brent crude rising 8%.
The main share indexes in France and Germany were also up by more than 3% on Tuesday morning.
On Monday, US President Donald Trump said he would be taking "major" steps to strengthen the US economy against the impact of the coronavirus outbreak, and analysts said this had helped to lift markets.
The rebound has also been helped by a slowdown in reported cases of coronavirus in China, according to Michael Hewson, chief market analyst at CMC Markets UK.
"This optimism, along with expectations around further central bank actions is, for now, offsetting the news that the whole of Italy has gone into lockdown and the Spanish government has taken the decision to close all schools and universities in Madrid," he said.
Post a Comment