Ongoing coronavirus pandemic remains the main problem for the stocks. In this situation, it is not surprising that investors are closely monitoring the situation. Several stock exchanges such as the New York Stock Exchange (NYSE) decided to close its trading floor starting from Monday. As a result, NYSE switched to fully electronic trading.
Central banks, as well as governments, decided to allocate billions of dollars to stabilize the situation. Such decisions show that governments of top economies are ready to do whatever it takes to avert the worst-case scenario.
For example, the U.S. Federal Reserve, as well as the European Central Bank and Bank of England, made the decision to allocate money for financial markets.
Also, governments of top economies promised to spend trillions of dollars to support their economies.
Recently, the New York Federal Reserve announced that it would purchase another $10 billion of mortgage-backed securities. This is a part of the larger package of $200 billion in mortgage bonds the Federal Reserve promised to buy as it relaunched quantitative easing.
Central banks in cooperation with governments have the opportunity to solve at least some of the problems created by a coronavirus.
Asian stocks and the ongoing situation
On Friday, stocks across the Asia Pacific region saw gains and this is very important as stocks are struggling to cope with the new reality.
Hopefully, South Korea’s Kospi index rose 7.44% to 1,566.15. Furthermore, the Kosdaq index jumped 9.2% to 467.75.
Stocks across the region also followed the footsteps of South Korean stocks. Hong Kong’s Hang Seng index added 3.97% as of its final hour of trading.
Also, mainland Chinese stocks saw gains on the day. The Shanghai Composite index gained 0.47%. At the same time, the Shenzhen composite index added 0.166%
Australia’s S&P/ASX 200 gained 0.7% to close at 4,816.60.
Right now, investors and analysts are trying to understand what will happen to the stock markets. One of the major questions is how the coronavirus would affect the markets in the long run.
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