Global equity indices surged higher on Monday, between 5 – 6%, on renewed strength shown by European equity markets in the wake of a big stimulus ahead.
The EU’s finance ministers will be in focus on Tuesday as they meet to try and agree on a list of measures to mitigate the impact of the coronavirus on the region’s economies. If enough headway is made, the bloc’s leaders could debate and then rubber-stamp a deal later in the week. On the other hand, lowering the number of COVID-19 cases seems to one more factor to extend bullish sentiments among investors.
There is no doubt that a small ray of hope in a difficult situation stimulates positive sentiment among the investors, which may keep their anxiety levels at bay despite the depth of the economic damage. Until we find a complete cure for this disease and control its spread completely, financial stimulus can hardly prove a permanent supportive measure.
Most Asian economies will not…