Connect with us

Hi, what are you looking for?

Finance

Strong recovery for financial markets after US stimulus packages

Global financial markets recorded a strong recovery after new the US approved a new $2.3 trillion stimulus package.

Global financial markets recorded a strong recovery after the US approved a new $2.3 trillion stimulus package.

Some financial markets achieved their highest indicators in 30 years, after investors’ appetite for securities.

The recovery took place despite persistent concerns about the continuing difficulties facing the United States, the world’s largest economy, in light of the Coronavirus pandemic.

As risk appetites increased, after the new stimulus package and government spending, the dollar fell to near a two-and-a-half year low.

The dollar index fell 0.1% to 90.125 in lackluster trading, hovering near the 89.723 level it reached in April 2018.

The euro rose 0.2% to $1.22375 in Asian trade, approaching a two-and-a-half year high of $1.22735, which it touched earlier this December.

The dollar stood at 103.695 against the yen, little changed against the other safe-haven currency.

The pound sterling rose 0.2% to $1.3484 after two days of decline. It had risen to $1.3625 this month, a level not seen since May 2018.

But investors sold for a profit after a Brexit trade deal was confirmed last week.

The Australian dollar rose 0.2% to 75.927 US cents, while the New Zealand dollar rose 0.3% to 71.19 cents.

The Chinese yuan gained 0.2% to record 6.5192 against the dollar in foreign markets. In internal transactions, it stood at 6.5310 per dollar.

Nikkei Index

The Japanese Nikkei index also closed at a peak of more than 30 years, as risk appetite improved, supported by the new US stimulus package to counter the COVID-19 repercussions.

Nikkei index rose 1.63% to 27,292.37 points, its highest closing level since August 16, 1990. It  also recorded its largest daily gain since mid-June.

TOPIX index increased 1.74% to 1,819.18 points, which is the best closing level since October 2018.

The rise included all but two of the 33 sub-indices of the Tokyo Stock Exchange.

The airline and road transport sectors were among the biggest gainers on the main exchange.

Related:

Global Dollar Reserves Declines In Q3

Finance

U.S. oil production fell by more than 1 million barrels per day in February, the lowest level since October 2017. The U.S. Energy Information...

World

The US President Joe Biden administration has proposed a new global tax system that can put an end to all multinational companies’ tax problems,...

World

The US Senate has approved Biden’s stimulus plan, the largest stimulus package approved by the United States in its history, valued at $1.9 trillion....

Politics

The Yemeni Houthis said it fired a missile at an Aramco facility in the Saudi city of Jeddah. Saudi Arabia did not comment on...