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Europe midday: Stocks rise amid hopes tide has turned in Italy

By Alexander Bueso

Date: Wednesday 25 Mar 2020

Europe midday: Stocks rise amid hopes tide has turned in Italy

(Sharecast News) - Stocks on the Continent are trading mostly higher following a historic day of trading Stateside, amid some positive headlines on the coronavirus front and as regards government relief measures.
In Italy, the number of deaths fell on Tuesday for a third successive, prompting analysts to say that the tide had turned.

The World Health Organisation concurred, with a top official saying on Wednesday that the peak in the Covid-19 pandemic in that Mediterranean country might reach its peak during the current week.

Tragically, that came alongside data showing that the number of deaths in Spain had surpassed those in China, although there too there were hopes that the pandemic might start to peak soon.

As of of 1500 GMT, the benchmark Stoxx 600 was adding 0.62% to 305.89, alongside a 1.37% advance for the Cac-40 to 4,301.87, while the Dax was down by 0.84% at 9,622.67.

The FTSE Mibtel was also lower, but only slightly, dipping 0.61% to 16,839.76.

Overnight, the US S&P 500 clocked in with its biggest one day gain since October 2008 and the Dow Jones Industrials put it in its largest rise since 1933.

"What a difference a day makes with the Dow posting its best one-day gain since the days of the Great Depression in 1933, and the S&P500 its best day since 2008, as melt down Monday, turned into turnaround Tuesday," said Michael Hewson, chief market analyst at CMC Markets UK.

"Despite the strength of yesterday's move, markets in the US still weren't able to take out the highs from Friday, highlighting quite neatly how volatile markets have been in recent days."

In the background, US lawmakers had reportedly reached a preliminary agreement on a coronavirus relief bill of approximately $2trn.

Meanwhile, Germany's parliament approved a €750bn spending and financing package and reports indicated that the €400bn European Stability Mechanism might be activated.


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