World stock markets recover painfully despite coronavirus and oil crisis

Slight relief for the majority of markets at the opening of the stock exchanges on Tuesday morning. Asian markets opened slightly higher, relieved by the rise in oil prices and by new hopes of government budget measures to support the faltering global economy caused by the coronavirus.

The star index Nikkei closed Tuesday on a gain of 0.85% to 19,867.12 points, against a plunge of 5% the day before. The broader Topix index gained 1.28% to 1,406.68 points.

The Chinese stock markets were also in the green Tuesday at the end of the session. In Hong Kong, the Hang Seng index rebounded 2% around 6:45 GMT, while the Shanghai composite index gained 1.69% and that of Shenzhen 2.17%. The Tokyo Stock Exchange has also been comforted by the ebbing yen, which it follows like milk on fire.

Light respite for Paris, Frankfurt and London

In Europe, the stock markets heal their wounds after having finished in the bright red Monday evening. While the Italian government announced the confinement of the entire population, the Milan Stock Exchange had recorded the biggest plunge and unscrewed by 11.17% in closing. But Tuesday morning, around 9:00 GMT, Paris, Frankfurt and London marked increases of between 2.5% and 3%.

After having experienced the second worst drop in its history on Monday (-8.39%), the CAC 40 rebounded by + 1.29% to 4,770.62 points. The Paris Stock Exchange is benefiting from a slight rebound in oil prices and is banking on an energetic action by governments and central banks in the face of the coronavirus crisis, in the aftermath of the worst stock market session in twelve years. The only exception is the Moscow Stock Exchange, which opened in free fall by more than 10% after a three-day weekend, cashing in the fall in crude and ruble.

Investors hope that the European Central Bank (ECB) draws on Thursday a vast package of anti-crisis measures against the coronavirus, which risks undermining an already weakened eurozone economy.

Hopes for "large-scale" measures

Hopes of new "far-reaching" measures to support the US economy, promised Monday by Donald Trump, have also relieved investors in Asia.

The Japanese government should also soon announce a financial aid plan to cope with the economic consequences of the epidemic.

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"The markets welcome this discussion on budgetary measures to support consumption and economic activity," said Kiyoshi Ishigane, strategist at Mitsubishi UFJ Kokusai Asset Management, quoted by Bloomberg.

The euro was worth 118.80 yen after 6:30 GMT, against 117.1 yen the day before. A euro was also traded for 1.1350 dollars, against 1.1458 dollars Monday at 19:00 GMT.