FTSE 100 LIVE: Stock markets surge as global economies bring fight to coronavirus pandemic

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13 shares, 94 points
FTSE 100 LIVE: Stock markets surge as global economies bring fight to coronavirus pandemic 1

The FTSE 100 in London was up 1.4 percent following several weeks of struggles resulting from financial uncertainty and enforced nationwide lockdowns. Europe’s composite index, the Stoxx 600, also increased 1.4 percent in early morning trading, while Frankfurt’s Dax rose 2.2 percent. This has seen European stock markets follow the lead from their Asian counterparts, which also saw significant gains this morning.

Japan’s Topix benchmark was up 1.8 percent after the country’s central bank said it would buy an unlimited amount of government bonds as part of efforts to support the world’s third largest economy.

The Bank of Japan also said it would quadruple its limit on corporate debt purchases to ¥20tn ($ 186bn).

China’s CSI 300 index of Shanghai increased 0.7 percent – despite gloomy figures revealing industrial company profits plunged y a third last month.

Traders said the gains across the world show investor optimism is rising around policy decisions from central banks this week, with the European Central Bank, US Federal Reserve and Bank of Japan meeting to set policy.


9.58am update: Boris Johnson ‘wants to get economy moving as fast as I can’ but urges caution

The Prime Minister said outside 10 Downing Street: “I know it is tough, and I want to get this economy moving as fast as I can.

“But I refuse to throw away all the effort and the sacrifice of the British people and to risk a second major outbreak and huge loss of life and the overwhelming of the NHS.”

9.52am update: Pound starts week on front foot against major currencies

The pound is up 0.27 percent against a broadly weaker dollar at $ 1.2424 and against the euro, has increased 0.3 percent to 87.18 pence in early London trading.

Sterling has been boosted by improving global risk appetite and hopes that lockdown measures may start to be eased.

Michael Hewson, chief market analyst at CMC Markets UK, said: “Attention will be on him, and in particular the government more broadly, to announce some sort of pathway out of lockdown, as it becomes increasingly apparent how much economic damage is being done to the UK economy.”

8.51am update: Financial analyst optimistic on early stock rises

Spreadex financial analyst Connor Campbell said: “With countries across the world – notably France, Italy, Spain, Australia and New Zealand – aiming to ease some of their lockdown measures this week or next as they try to find the ‘new normal’, the markets rebounded hard on Monday.

“Though we have no idea when the terms of lockdown will be altered, let alone ended, in the UK, the examples set by its global, and especially European, peers still sent the FTSE sharply higher.

“Climbing close to 100 points, the index neared 5850, pushing it towards a two-week peak.”

8.04am update: Adidas warns of second quarter loss

The sportswear giant has warned it could make a loss during the second quarter of this year after it missed its earnings expectations in the first three months of the year.

Adidas is expecting to make its first quarterly loss in more than four years for the second three-month period after profit plummeted 93 percent to €65million compared to a year ago.

The coronavirus pandemic is hitting the firm hard, with almost three-quarters of its global stores closed during lockdowns.

This contributed to revenue falling by nearly a fifth in the first quarter but during the current quarter, Adidas is expecting sales will fall at more than twice that rate.

Adidas chief executive Kasper Rorsted said in a statement: “Despite the current situation, I am confident about the attractive long-term prospects this industry provides for Adidas.”

7.56am update: Chinese industrial sector takes massive hit as profit plummets 35 percent

China’s industrial firm saw profits plunge 34.9 percent last month compared to a year ago, the National Bureau of Statistics has warned, as the coronavirus outbreak continues to smash the country’s huge economy.

The latest figures come after China reported its first contraction in economic growth since the 1970s, with GDP falling 6.8 percent in the first quarter of this year.

7.49am update: National Australia Bank raising $ 2.2bn to prevent massive economy damage

The bank is raising $ 2.2billion in capital and slashing its dividend by almost two-thirds to protect against a huge hit to the economy from the corcoanqvirus pandemic.

NAB chief executive Ross McEwan has told investors the bank is taking steps to manage the “rapid and unprecedented upheaval” caused by the pandemic.

This has already played a large part in profits plunging by half compared to last year.

He said: “Measures to contain the spread of Covid-19 have had a sudden and materially negative impact on economic activity.

“For Australia, we expect GDP to decline 8.4 per cent by September 2020 compared to December 2019 and not return to pre-Covid19 levels until early 2022, while unemployment is expected to peak at 11.7 per cent in mid 2020.”

7.38am update: Asia-Pacific sticks begin week on the front foot

sia-Pacific stocks have been on the rise this morning, with Japan’s Topix up 0.5 percent, the Kospi in Seoul up 0.3 percent higher and Australia’s S&P/ASX 200 edging up 0.1 percent.

Brent crude was 0.9 percent higher at $ 21.64 a barrel, but West Texas Intermediate, the US oil marker, fell 2.3 per cent to $ 16.55.

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