Top Things to Know in the Market on Thursday, April 9th

• 2020-04-09
• Traiding Idea

The Dow Jones jumped 700 points, retakes 23,000 as markets continue to recover

At the end of Wednesday's trading session, U.S. stock surged as Bernie Sanders dropped out of the presidential race, and some Wall Street political concerns were relieving.

The Dow Jones industrial average jumped 779.71 points, or 3.4 %, to 23,433.57.

S&P 500 rose 3.4 % to 2,749.98, , while the Nasdaq composite climbed 2.6 % to 8,090.90 points.

After the U.S. government announced that the country would reach the peak of coronavirus next week, hopes that the U.S. could start to turn a corner on the coronavirus outbreak soon, also lifted equities. 

Some of Bernie Sanders' policy proposals, including health care for all and tax increases for the rich, have worried several investors and owners of large U.S. companies, and now with his exit from the presidential race, Joe Biden, who is more market-friendly candidate, will have a better chance.

European stock markets

The European Central Bank (ECB) has told eurozone finance ministers that the bloc needs fiscal measures worth up to 1.5 trillion euros ($ 1.6 trillion) to deal with the economic crisis caused by the COVID-19 epidemic.

The European Commission has estimated in a video conference that the European bloc economy will shrink by 10 % this year. But at the meeting, European officials failed to agree on how to boost the economy.

After 16 hours of negotiations, Germany, the Netherlands, and other northern European countries were ready to spend 500 billion euros to support the European economy.

But France, Italy, and Spain announced that the European financial package to curb the outbreak of the coronavirus should be well above 1 trillion euros, which is in line with the European Central Bank's estimate of financing needs of 1.5 trillion euros.

In London, the FTSE 100 index was up 2.36 % and closed at 5,811.64. French CAC 40 index rose 1.84 % to closed at 4,584.24 points.

Also, Germany's DAX 30 index surged 2.02 % to 10,541.38. In Spain, the IBEX 35 index climbed 1.74% to 7,072.90.

Asian stock markets

In Asian stock markets, indices also performed similarly. Japan's benchmark Nikkei 225 dropped 0.04% and closed at 19.345.77. The Hang Seng in Hong Kong rose 1.14% to 24.305.67.

China's Shanghai Composite advanced 0.33% and ended at 3,792.18. In Australia, the S&P/ASX 200 index climbed 3.46% to 5,387.70.

Among other major Asian indices, TOPIX (Tokyo Stock Price Index) was up.

oil market

In the final hours of trading on Wednesday, oil prices jumped sharply after reports of OPEC+ production cuts.

The jump came after the oil minister of Algeria announced that members of OPEC+ would hold a virtual meeting on Thursday to discuss a massive production cut of 10 million barrels per day.

The United States Oil Fund (USO), which tracks the price of U.S crude oil, has been temporarily halted due to sharp price fluctuations at the end of trading.

U.S. West Texas Intermediate ( WTI ) futures surged 5.22%, to settle at $26.40 per barrel. Brent crude futures rose 3.01%, to $33.83 per barrel.