* Early signs of virus peaking in Europe, New York
* Euro races higher in first gains in seven sessions
* World FX rates in 2020 http://tmsnrt.rs/2egbfVh
(Updates prices, changes comment, byline, dateline)
By Rodrigo Campos
NEW YORK, April 7 (Reuters) - World stock markets posted
sharp gains on Tuesday as signs of progress in curbing the
spread of the novel coronavirus in both Europe and the United
States fueled investors' appetite for risk.
Oil prices climbed on hopes of a deal to decrease supply,
while the euro jumped against the greenback after six sessions
of declines. USD/
Japan's Nikkei .N225 posted a 2% gain overnight as its
government promised a near $1 trillion stimulus package - equal
to a fifth of its gross domestic product. Mainland China reported no coronavirus deaths for the first
time since the pandemic began and a drop in new cases, a day
before Wuhan, where the virus emerged in December, was set to
lift its lockdown. But France's coronavirus figures on Monday showed that the
rate of increase in fatalities sped up again after several days
of slowing, even as the increase in people needing intensive
care continued to decelerate.
"This is looking more like a bear market rally," said Nancy
Perez, senior portfolio manager at Boston Private Wealth in
Miami.
"I think there's still a lot of headwinds that could cause
this market to re-test the lows. There will be the initial
resumption of business on paper, but then the actual actions
will have to follow."
Worldwide, the virus has infected more than 1.3 million
people and killed over 74,000, and though the numbers are still
rising in many highly populated countries, some tentative
improvements have given hope. The Dow Jones Industrial Average .DJI rose 506.01 points,
or 2.23%, to 23,186, the S&P 500 .SPX gained 45.28 points, or
1.70%, to 2,708.96 and the Nasdaq Composite .IXIC added 64.89
points, or 0.82%, to 7,978.13.
The pan-European STOXX 600 index .STOXX rose 1.55% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
2.03%.
Emerging market stocks rose 3.20%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 2.7%
higher, while Japan's Nikkei .N225 rose 2.01%.
With market optimism on the rise, the U.S. dollar dropped
and riskier currencies outperformed as risk appetite improved on
hopes that lock-downs may be slowing the spread of the
coronavirus in some countries.
"Fatalities in the UK remain relatively low and slowed for
the second day, although the apex is still thought to be about
10 days away,” Win Thin, global head of currency strategy at
Brown Brothers Harriman in New York, said in a report.
“High-frequency data on coronavirus infections and death
rates continue to stabilize,” he said.
The dollar index =USD , tracking the greenback against six
major currencies, fell 0.675%, with the euro EUR= up 0.83% to
$1.0881.
The Japanese yen strengthened 0.17% versus the greenback at
109.06 per dollar, while Sterling GBP= was last trading at
$1.232, up 0.74% on the day.
OIL WOBBLY
Oil prices were in and out of negative territory as hopes
that the world's biggest producers would agree to cut output
were countered by analyst fears that a global recession in the
wake of the coronavirus crisis could be deeper than expected.
U.S. crude CLc1 was up 0.77% at $26.28 per barrel and
Brent LCOc1 was at $32.95, down 0.3% on the day.
U.S. Treasury yields rose as the bond market mulled a
looming supply deluge and as stocks continued their rise.
Benchmark 10-year notes US10YT=RR last fell 26/32 in price
to yield 0.7581%, from 0.678% late on Monday. The 30-year bond
US30YT=RR last fell 1-20/32 in price to yield 1.3444%, from
1.285%.
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Global stock markets shaking off the virus https://reut.rs/3bVMQ0k
Coronavrus impact on global markets https://reut.rs/2V91s5N
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