The export-heavy FTSE 100 rose 0.8 percent while the mid-cap FTSE 250 added 1 percent, with energy , life insurers and aerospace-related stocks among the early gainers as coronavirus lockdown restrictions begin to ease. Travel and leisure stocks rose for a third straight session as the government said it would review its quarantine procedures for international arrivals based on their economic impact.
A 7.3 percent jump for TUI Group, Europe’s biggest travel company, was also driven by a deal it struck with US-based Boeing for compensation and slower delivery of the 737 MAX aircraft.
Meanwhile, Japan’s benchmark Topix index rose 0.6 percent, while Hong Kong’s Hang Seng added 1.2 percent and South Korea’s Kospi rallied 2.5 percent. Oil went back above $ 40 for the first time in almost three months.
Kerry Craig, global market strategist at JPMorgan, told FT: “Compared to market drawdowns in past recessions, the speed and scale of this rebound is unusual.
“The difference here is huge amounts of stimulus from governments and central banks.”
In Asia, China’s CSI 300 index of Shanghai and Shenzhen-listed stocks climbed 0.5 percent.
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FTSE 100 LIVE: Global stocks climbed on Wednesday
11.013am update: Billions could be wiped off Scottish economy
Nicola Sturgeon faces a nightmare after it emerged billions of pounds could be wiped from Scotland’s economy if the UK Government refuses to delay Brexit.
A new report has found there could be major costs to Scotland’s economy from Brexit for years to come and, without extending the Brexit transition period or a free trade deal being agreed, agriculture, fisheries and manufacturing could all be hit hard.
10.20am update: Sterling climbs against weak dollar
Sterling hovered around $ 1.26 on Wednesday after rising to a one-month high against a broadly weaker dollar as Britain showed signs it might be willing to compromise on sticking points to reach a Brexit deal.
The dollar fell against most currencies as investors pondered what the potential fallout might be from the mass protests against racism spreading across the US. And prospects for more government stimulus and a global economic recovery emboldened investors to step up holdings of riskier assets.
Against a weakening dollar, the pound touched $ 1.2608 around 8am, its highest since April 30. It was last at $ 1.2580, up 0.2 percent on the day.
Versus the euro, sterling lost 0.1 percent to 89.07 as the pound is still weighed down by many factors, including Brexit-related risks and speculation about negative rates.
9.07am update: FTSE up
The FTSE 100 index at 8.45am was up 62.17 at 6282.31.
8.01am update: FTSE 100 opens
The FTSE 00 index opened at 6220.14.
7.50am update: FTSE unchanged
The FTSE 100 index at 7.44am was unchanged at 6220.14.
7.38am update: G7 to hold telephone conference
Ginance leaders of the Group of Seven nations will hold a teleconference on Wednesday to discuss measures to combat the coronavirus pandemic, Japan’s Jiji news agency said.
It will be the latest of several teleconferences held by G7 finance leaders since the spread of the pandemic that has pushed the global economy to the verge of deep recession.
The biggest financial contributors to the WHO
7.15am update: Australia already in recession
Australia’s economy is already in recession, the country’s treasurer said on Wednesday, after official data showed gross domestic product fell last quarter as entire business sectors were shut down to fight the coronavirus.
Data from the Australian Bureau of Statistics (ABS) showed the A$ 2 trillion ($ 1.39 trillion) economy contracted 0.3 percent in the quarter ended March, the first decline in nine years.
That took the annual growth to 1.4 percent, the slowest since the 2009 global financial crisis, as the economy was hit by the worst bushfire season in living memory, a prolonged drought and a pandemic that shut down businesses and left many without jobs.
6.06am update: Asian stocks climb to 3-month high as recovery hopes outweigh looming risks
Asian shares vaulted to a near three-month high on Wednesday as hopes of more stimulus and further easing in social restrictions around the world outweighed caution over a host of worries from the coronavirus to growing US civil unrest.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.3 percent, extending its rally into a fifth straight day to reach a level last seen on March 9.
Japan’s Nikkei rose 1.2 percent to its highest level since late February, while mainland China’s CSI300 rose 0.4 percent to break above its May peak to a 12-week high.
E-mini futures for the US S&P 500 were up 0.2 percent in early Wednesday trade, extending the gains so far this week to 1.4 percent.