The massive stimulus announced by governments and central banks in recent days to lift confidence helped settle some nerves.
Over the past few weeks, central banks and governments have laid out trillions of dollars in various programs to support financial markets and companies. Markets finally seem to respond to central bank and policymakers’ action. Stock markets rebounded from some of their recent huge losses on Friday.
All three main U.S. stock indexes were on course to open higher on Friday in what is still the market’s worst month in three decades. Further, investors are counting on further policy easing in the next few days.
Markets in Europe opened higher on Friday after improved sentiment in Asia, signalling a rally through all geographies and sectors.
Volatility in financial markets across geographies and asset classes is at record highs. The relentless spread of the coronavirus outbreak threatens to derail global economic growth.
A wave of credit rating downgrades in the corporate sector risks deepening a funding crisis for company bosses and spreading it to other markets.
START TRADINGForex – Massive stimulus seems to settle nerves
A global scramble for dollar funding which sent other currencies reeling the previous days came to a halt. Currencies from the Australian dollar to the British pound tumbled to multi-year lows this week. But Friday restored some calm after days of selling.
The U.S. dollar eased on Friday after a rally that put it on track for its biggest weekly rise since the 2008 financial crisis. The index that tracks the greenback against a basket of peer currencies was down 1.3%.
Τhe Australian dollar jumped 3.4%, as Friday restored some calm after days of selling.
The euro was among the major gainers, up more than 1% to $1.0832. The common currency was not far off three-year lows, having shed more than 3% for the week so far – the steepest decline since mid-2015.
Sterling rose 3.3% from a 35-year low to $1.1878. Sterling rebounded versus the U.S. dollar and euro amid a tentative rally in global markets on Friday.
The pound whipsawed from a fresh low of $1.1413 versus the dollar in Asian trading hours overnight. It was last up nearly 2.4% on the day at around $1.18.
Against the euro, sterling was up 2% and was heading for its second day of gains in a row, last trading at 91.23 pence per euro
The jump in the dollar has made gold more expensive in other currencies. While it rallied on Friday to $1,505.78 per ounce, it remains down about 1.6% on the week.
Aiding sentiment was a rally in oil prices overnight. U.S. crude was 3% higher at $26 a barrel on Friday, up from a low of around $20, while Brent crude was higher by 2.6% at $29
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money