Home Business NewsBusiness Shares rally across UK, Europe and Asia

Shares rally across UK, Europe and Asia

by LLB Editor
24th Mar 20 9:28 am

Stock markets have bounced back after a series of measures and new data on coronavirus cases gave investors more confidence that the crisis can be resolved.

Russ Mould, investment director at AJ Bell, said: “Central banks are doing everything they can to provide support to the markets including the US Federal Reserve’s unlimited bond buying.

“The UK’s stricter lockdown rules provide some hope that the spreading of the virus can be slowed in this country.

“And the fact that Italy has recorded a smaller increase in coronavirus cases for the second consecutive day would suggest that its containment measures are working.”

The FTSE 100 jumped 3.7% to 5,180, driven by gains in miners and oil producers. The top riser was Carnival, up 9.2% as investors took the view that too much bad news had been priced into its stock. Holiday seller TUI was also one of the best performers on the FTSE for similar reasons, rising 8.5%. Both these stocks had previously suffered sharp declines on fears about demand for their services.

Just Eat Takeaway soared by 7.1% in anticipation that its food ordering and delivery capabilities will be very important during the UK’s stricter lockdown. Restaurants and cafes will be allowed to stay open only for food delivery and takeaway services. With more people afraid of leaving their home, Just Eat’s platform could see a significant increase in demand.

Only three FTSE 100 stocks were down in early trading on Tuesday – utility providers United Utilities and Centrica, and Primark owner Associated British Foods.

European markets rallied even harder including a 5.3% gain Germany’s DAX index. In Asia, Japan’s Nikkei 225 jumped by 7.1% and Hong Kong’s Hang Seng index advanced by 4.5%.

Oil rebounded by 2.9% to $27.82 per barrel and the pound strengthened 0.9% against the US dollar.

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