Stock exchanges rallied Monday as the Bank of Japan added more stimulus to cushion the impact of the coronavirus and investors cheered news more nations were relaxing lockdowns, though the oil price took another tumble with storage running short.
The Bank of Japan matched market speculation by committing to buy limitless quantities of government bonds and sharply raising purchases of company and commercial debt, the latest in a raft of huge central bank stimulus plans which have helped propel a near 25% rally in global stock markets.
The Federal Reserve and the European Central Bank meet later in the week, with the latter prone to do more bond-buying.
The EURO STOXX 600 surged 1.8%, following on from decent gains on Asian markets. Germany’s DAX rose 2.37%, France’s CAC 40 1.93% and Britain’s FTSE 100 1.66%.
Wall Street seemed set to open higher, with S&P futures 0.7% ahead.
The MSCI world equity index, which tracks shares in 49 nations, hiked 0.78%. The index is now up 25% from its low point on March 23 but continues to be some 22% off the highs in February before panic over the virus caused markets to plunge.
Around 173 firms in the S&P 500 will post earnings this week, including Apple, Amazon, Facebook, Microsoft, Caterpillar, Ford, General Electric, and Chevron.