Stocks Brush Aside Record US Unemployment Surge
Umer Jamshaid Published March 27, 2020 | 12:01 PM
Stocks shot higher Thursday as investors brushed aside a record surge in US unemployment benefit claims, instead focusing on progress towards a massive stimulus plan and a pledge by world leaders for a "united front" in the fight against the coronavirus pandemic
London, (UrduPoint / Pakistan Point News - 27th Mar, 2020 ):Stocks shot higher Thursday as investors brushed aside a record surge in US unemployment benefit claims, instead focusing on progress towards a massive stimulus plan and a pledge by world leaders for a "united front" in the fight against the coronavirus pandemic.
Federal Reserve Chairman Jerome Powell said the US central bank would continue to "aggressively" pump liquidity into the economy and added that "we're not going to run out of ammunition" to support lending.
The dollar fell sharply against its main rivals on the developments.
Powell acknowledged there would be a sharp downturn as more and more countries confine people at home and close non-essential businesses to slow the spread of the respiratory ailment COVID-19.
In one of the latest indications of that impact, the US Labor Department said first time unemployment claims soared to 3.3 million last week -- the highest number ever recorded.
That compares to 281,000 first-time filers in the prior week and blows away the previous record of 695,000 set in October 1982.
"US markets are roaring ahead again, after Jerome Powell's promise of more actions if needed outweighed a shocking rise in US jobless claims," said Chris Beauchamp, chief market analyst at online trading firm IG.
There was also movement on a massive $2 trillion stimulus bill, with the House of Representatives expected to vote Friday on the measure approved Wednesday by the Senate.
Meanwhile, G20 nations pledged a "united front" in the fight against coronavirus, saying they were injecting $5 trillion into the global economy to counter the pandemic amid forecasts of a deep recession.
"The united front from the world leaders helped market confidence, because as far as the west is concerned, the battle is in its infancy," said David Madden, a market analyst at CMC Markets UK.
The G20 pledge helped pull European stocks into positive territory.
They had spent most of the day in the red after the international ratings agency S&P Global warned that the coronavirus will push Britain and the euro area into recession this year, with their economies expected to shrink by as much as two percent.
- Singapore contracts - In Asia on Thursday, Tokyo's main stocks index ended down 4.5 percent after surging by almost one fifth over the previous three days, while Hong Kong shed 0.7 percent and Shanghai eased 0.6 percent.
Singapore lost more than one percent as the city-state said its economy contracted sharply owing to virus fallout.
Compared with the previous quarter, GDP dived 10.6 percent, as all sectors of the economy were battered.
The nation's economy is viewed as a barometer for the health of global trade.
"Singapore has kicked off the rounds of shockingly poor data," said Fiona Cincotta, an analyst at City Index trading group.
"This is merely giving us a taste of what's to come. The job market across the globe is about to turn very ugly," she added.
- Key figures around 1630 GMT - London - FTSE 100: UP 2.2 percent at 5,815.73 points (close) Frankfurt - DAX 30: UP 1.3 percent at 10,000.96 (close) Paris - CAC 40: UP 2.5 percent at 4,543.58 (close) Milan - FTSE MIB: UP 0.7 percent at 17,369.38 (close) Madrid - IBEX 35: UP 1.3 percent at 7,033.20 (close) EURO STOXX 50: UP 0.9 percent at 2,826.37 New York - Dow: UP 5.2 percent at 22,293.50 Tokyo - Nikkei 225: DOWN 4.5 percent at 18,664.60 (close) Hong Kong - Hang Seng: DOWN 0.7 percent at 23,352.34 (close) Shanghai - Composite: DOWN 0.6 percent at 2,764.91 (close) Euro/dollar: UP at $1.1027 from $1.0883 at 2230 GMT Dollar/yen: DOWN at 109.71 yen from 111.20 yen Pound/dollar: UP at $1.2139 from $1.1890 Euro/pound: DOWN at 90.84 pence from 91.51 penceBrent North Sea crude: DOWN 3.0 percent at $26.58 per barrelWest Texas Intermediate: DOWN 5.6 percent at $23.11 per barrel
Related Topics
Recent Stories
Today Gold Rate in Pakistan 25 April 2024
Mired in crisis, Boeing reports another loss
Session Awarding Ceremony 2024 held at Cadet College Muzaffarabad
Austrian ski great Hirscher to make comeback under Dutch flag
Pakistan, Japan agrees to convene 'Economic Policy Dialogue'
FM Dar conveys deepest sympathy on torrential rains devastation in UAE
Spain PM Sanchez says weighing resignation after wife's graft probe
Tennis: ATP/WTA Madrid Open results - 1st update
Long-lost Klimt portrait auctioned off for 30 mn euros
Osaka seals first win on clay since 2022 in Madrid
Earthquake jolts Karachi
Sindh minister orders operation after attack on police in Ghotki
More Stories From Business
-
Today Gold Rate in Pakistan 25 April 2024
21 minutes ago -
Meta profits soar but costs of AI cause worry
1 hour ago -
Mired in crisis, Boeing reports another loss
9 hours ago -
Pakistan, Japan agrees to convene 'Economic Policy Dialogue'
10 hours ago -
British-Pakistani firm unveils $35 million luxury apartments for overseas Pakistanis in Islamabad
10 hours ago -
European stocks lose momentum after global rally
10 hours ago
-
New pulses varieties imperative to cater domestic food requirements: Dr Khalid Hasan
11 hours ago -
CEO KP-EZDMC meets CRBC officials
12 hours ago -
Pakistan among nine poor countries that produces 90 percent cigarettes for world
12 hours ago -
Chief Minister Gilgit Baltistan Haji Gulbar Khan calls on Minister for Privatisation
13 hours ago -
Germany nudges up growth forecast, ailing economy at 'turning point'
13 hours ago -
Revised UAF budget recommended
13 hours ago