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Stock markets end wild week with late Wall Street rally – as it happened Stock markets end wild week with late Wall Street rally – as it happened
(32 minutes later)
Rolling coverage of the latest economic and financial newsRolling coverage of the latest economic and financial news
And finally... attention is turning to next week, when global policymakers could make a new push to stabilise the world economy.
My colleagues write:
Right. Time to clock off for the weekend. Goodnight, and best wishes. GW
Here’s the scene on Wall Street tonight, as shares surged in late trading:
In another significant move, Trump has pledged to waive interest on federal student loans and purchase crude oil to boost the country’s strategic petroleum reserve.In another significant move, Trump has pledged to waive interest on federal student loans and purchase crude oil to boost the country’s strategic petroleum reserve.
That should push crude prices up next week, potentially reassuring markets worried about Saudi Arabi’a oil price war.That should push crude prices up next week, potentially reassuring markets worried about Saudi Arabi’a oil price war.
And despite today’s late surge, the S&P 500 is still down nearly 9% this week - with the Dow losing 10%. A tough old week for the markets, again.And despite today’s late surge, the S&P 500 is still down nearly 9% this week - with the Dow losing 10%. A tough old week for the markets, again.
One good day does not mean the worst is over, of course....One good day does not mean the worst is over, of course....
Boom! The US stock market has just posted its best day since 2008 - as Donald Trump declares a national emergency to combat the coronavirus.Boom! The US stock market has just posted its best day since 2008 - as Donald Trump declares a national emergency to combat the coronavirus.
The S&P 500 has closed over 9% higher tonight, gaining 230 points to 2,710 thanks to a late rally during Trump’s speech.The S&P 500 has closed over 9% higher tonight, gaining 230 points to 2,710 thanks to a late rally during Trump’s speech.
The Dow Jones also surged towards the finishing line, ending 9.36% higher at 23,185 points, a gain of 1,985 points (easily its best day in points terms ever).The Dow Jones also surged towards the finishing line, ending 9.36% higher at 23,185 points, a gain of 1,985 points (easily its best day in points terms ever).
And Trump is continuing to tell Americans they can get through the crisis:And Trump is continuing to tell Americans they can get through the crisis:
It feels significant that Donald Trump lined up a series of US business leaders for his ‘national emergency’ press conference. A sign that the public sector and the private sector are going to work together on this crisis.It feels significant that Donald Trump lined up a series of US business leaders for his ‘national emergency’ press conference. A sign that the public sector and the private sector are going to work together on this crisis.
My colleague Daniel Strauss explains:My colleague Daniel Strauss explains:
Stocks are rallying on Wall Street in late trading, as Donald Trump declares a coronavirus national emergency.Stocks are rallying on Wall Street in late trading, as Donald Trump declares a coronavirus national emergency.
After days of downplaying the severity of Covid-19, US president Donald Trump has now declared a national emergency over the pandemic.After days of downplaying the severity of Covid-19, US president Donald Trump has now declared a national emergency over the pandemic.
Speaking at the White House, Trump says the move will release about $50 billion in federal aid to fight the disease.Speaking at the White House, Trump says the move will release about $50 billion in federal aid to fight the disease.
It will “unleash the full power of the federal government,” said Trump, as he urged every state to set up emergency centres to help fight the virus.It will “unleash the full power of the federal government,” said Trump, as he urged every state to set up emergency centres to help fight the virus.
Our US Politics liveblog has all the details:Our US Politics liveblog has all the details:
Over on the Financial Times, Katie Martin has written an excellent piece about the market turmoil this week.Over on the Financial Times, Katie Martin has written an excellent piece about the market turmoil this week.
As she points out, investors took an age (in financial terms) to wake up to the coronavirus threat, as they were too focused on financial risks. Thus the belated, huge, plunge in stocks when the pandemic risk became obvious.As she points out, investors took an age (in financial terms) to wake up to the coronavirus threat, as they were too focused on financial risks. Thus the belated, huge, plunge in stocks when the pandemic risk became obvious.
But also, there’s an alarming lack of liquidity out there in the US government bond market. It’s not as obvious as the share price moves, but it really, really matters....But also, there’s an alarming lack of liquidity out there in the US government bond market. It’s not as obvious as the share price moves, but it really, really matters....
She explains:She explains:
The last week has been a story that investors, journalists and economists will tell their grandchildren about (and mightily bored they’ll be!)The last week has been a story that investors, journalists and economists will tell their grandchildren about (and mightily bored they’ll be!)
Although we’ve not actually seen any companies collapse, thank goodness, it has otherwise been just as gripping as the 2008 crisis.Although we’ve not actually seen any companies collapse, thank goodness, it has otherwise been just as gripping as the 2008 crisis.
As Nomura put it tonight:As Nomura put it tonight:
A glimpse at the FTSE 100 leaderboard today shows that miners, online grocer Ocado and takeaway firm Just Eat had a good day, but travel companies, housebuilders and retailers struggled.A glimpse at the FTSE 100 leaderboard today shows that miners, online grocer Ocado and takeaway firm Just Eat had a good day, but travel companies, housebuilders and retailers struggled.
Here’s a reminder of this week’s turmoil on the London stock market - which saw the worst day since 2008 on Monday, and the worst since 1987 on Thursday.Here’s a reminder of this week’s turmoil on the London stock market - which saw the worst day since 2008 on Monday, and the worst since 1987 on Thursday.
And that was £275bn gone, in a flash.And that was £275bn gone, in a flash.
Currency analyst Michael Brown of Caxton FX reckons there’s a big scramble for US dollars.... and problems finding enough US government debt.Currency analyst Michael Brown of Caxton FX reckons there’s a big scramble for US dollars.... and problems finding enough US government debt.
Unusual times, which will be contributing to the wild moves this week.Unusual times, which will be contributing to the wild moves this week.
After today’s rally, all Europe’s stock markets were a healthy shade of green.After today’s rally, all Europe’s stock markets were a healthy shade of green.
But since the start of 2020, they’re flashing red - with losses of almost 30% since January 1. The coronavirus has already inflicted serious financial costs, well before the full economic and personal harm has taken place.But since the start of 2020, they’re flashing red - with losses of almost 30% since January 1. The coronavirus has already inflicted serious financial costs, well before the full economic and personal harm has taken place.
Back on Wall Street, the rally is holding pretty firm.Back on Wall Street, the rally is holding pretty firm.
The main indices are all up around 4% today, a huge move in normal times, but rarely worth a second blink in the current climate of fear.The main indices are all up around 4% today, a huge move in normal times, but rarely worth a second blink in the current climate of fear.
Here’s the score card, with two hours of a mad week to go:Here’s the score card, with two hours of a mad week to go:
Dow: up 992 points or 4.6% at 22,192Dow: up 992 points or 4.6% at 22,192
S&P 500: up 109 points or 4.4% at 2,590S&P 500: up 109 points or 4.4% at 2,590
Nasdaq: up 298 points ot 5.1% at 7,500Nasdaq: up 298 points ot 5.1% at 7,500
Boeing (+10%) and Goldman Sachs (+11%) are the top risers on the Dow, ahead of Walgreen Boots (+9.95%) and JP Morgan (+9.5%).Boeing (+10%) and Goldman Sachs (+11%) are the top risers on the Dow, ahead of Walgreen Boots (+9.95%) and JP Morgan (+9.5%).
Companies across America have been taking steps to address the coronavirus pandemic this week, with many such as AT&T and JP Morgan activating home work policies.Companies across America have been taking steps to address the coronavirus pandemic this week, with many such as AT&T and JP Morgan activating home work policies.
But the long-term economic impact of the shuttering of America will take weeks if not longer to assess.But the long-term economic impact of the shuttering of America will take weeks if not longer to assess.
Michael Pearce, senior US economist at Capital Economics, said the escalating response to the crisis from the US government, closing schools, banning large gatherings, will take a “sharp toll on the economy”.Michael Pearce, senior US economist at Capital Economics, said the escalating response to the crisis from the US government, closing schools, banning large gatherings, will take a “sharp toll on the economy”.
Capital Economics has cut its US growth forecast for 2020 to just 0.6%, down from 1.8%.Capital Economics has cut its US growth forecast for 2020 to just 0.6%, down from 1.8%.
More here:More here: