European stocks rebound at open

European Union
European Union

European stock markets rallied by more than two percent in opening deals on Tuesday, as global investor sentiment was boosted by US Federal Reserve stimulus news.

In initial trade, London's benchmark FTSE 100 index of blue-chip firms advanced 2.5% to 6 214.39 points, Frankfurt's DAX 30 index won 2.4% to 12 199.97 and the Paris CAC 40 gained 2.3% to 4 925.07.

Asian equities jumped as growing fears about a possible second wave of infections were eclipsed by the Fed's launch of a massive programme to support Main Street businesses hit by the virus lockdown.

The main driver of the gains was the Fed's Main Street Lending Program and an emergency lifeline under which the Fed will buy up to $750 billion in corporate bonds.

"The formal start of the Fed's corporate bond buying programme boosted global sentiment," said City Index analyst Fiona Cincotta.

"Adding to the seemingly addictive stimulus high, the Trump administration is weighing up a $1 trillion infrastructure spend to spur on the economy in the wake of the coronavirus crisis."

ZAR/USD
17.14
(+0.09)
ZAR/GBP
21.52
(-0.02)
ZAR/EUR
19.33
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ZAR/AUD
11.90
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Gold
1794.38
(+0.02)
Silver
18.27
(+0.19)
Platinum
843.00
(+0.76)
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(-0.05)
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Top 40
50922.32
(+0.83)
Financial 15
10086.99
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Industrial 25
76855.87
(+0.55)
Resource 10
52017.34
(+1.71)
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