Stocks rally advances on German, US stimulus plans

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In New York, the Dow Jones index was up by 5.5 percent in afternoon trading, while London and Paris closed with gains of 4.5 percent.

Stock markets rallied worldwide on Wednesday as the US Congress prepared to approve an incredible stimulus package to help the world’s biggest economy withstand the Covid-19 pandemic.

“The Berlin administration will suspend their debt brake to combat the Covid-19 crisis – the move shows us the German government means business,” remarked David Madden, market analyst at CMC Markets.“A bit of a funny old session but the positive sentiment is holding and we saw a very strong finish for the European session, cementing yesterday’s bullish rally in fine fashion,” commented Neil Wilson, chief market analyst at trading group Markets.com.

But even as Covid-19 continues to spread, traders were nonetheless pretty upbeat after weeks of huge losses. The measure would put cash directly into the hands of Americans, provide grants to small businesses and hundreds of billions of dollars in loans for corporations including embattled airlines, and expand unemployment benefits.

 

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