U.S. stocks open 3 per cent higher on hopes virus peak could be closer

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Stocks climbed in early trading on Wall Street Tuesday as markets around the world piled on even more big gains following their huge rally a day earlier.

The S&P 500 index rose 3% in the first few minutes of trading and added on to Monday's 7% surge, following encouraging signs that the coronavirus pandemic may be close to levelling off in some of the hardest hit areas of the world.

Investors have been anxiously watching for signs that the rate of new infections may be hitting its peak, which would give some clarity about how long the upcoming recession will last and how deep it will be. Without that, markets have been guessing about how long businesses will remain shut down, companies will lay off workers and flights remain cancelled due to measures meant to slow the speed of the outbreak.

France's CAC 40 stock index was up nearly 3.4% to 4,488, while Germany's DAX jumped 4% to 10,477. Britain's FTSE 100 added 2.7% to 5,739.In Asia, Japan's benchmark Nikkei 225 gained 2.0% to finish at 18,950.18 ahead of Prime Minister Shinzo Abe's announcement of a state of emergency in Tokyo and six other regions.

 

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