Australian equities the only bright spot in sea of global stocks gloom

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JPMorgan predicts global GDP could contract at a 10.5% annualised rate in the first half of 2020

It didn't help that the US dollar was back on the climb. The euro and pound were both batted back by about 0.6%, leaving the former near $1.1070 and sterling at $1.2350. On Friday, Britain had become the first major economy to have its credit rating cut because of the coronavirus.

Australia's benchmark ASX200 registered a late surge, closing 7% up after Prime Minister Scott Morrison unveiled a $130bn package to help to save jobs. As a result, central banks have mounted an all-out effort to bolster activity with rate cuts and huge asset-buying campaigns, which have at least eased liquidity strains in markets.

Rodrigo Catril, a senior forex strategist at NAB, said the main question for markets was whether all the stimulus would be enough to help the global economy withstand the shock.

 

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