The German DAX Index graph is pictured during a trading session at Frankfurt’s stock exchange in Frankfurt. ― Reuters pic
The Bank of England is widely expected today to announce cash stimulus worth at least £100 billion , according to analysts, after the UK economy contracted by one fifth in April amid a nationwide lockdown triggered by the coronavirus outbreak. With £445 billion in cash already swirling around the UK economy to support the economy over the past decade following the global financial crisis and amid Brexit uncertainty, the BoE hiked the amount by £200 billion and slashed its interest rate to a record-low 0.1 per cent in the wake of Covid-19.
Central bank and government financial support worldwide, along with the easing of lockdown restrictions, the opening up of economies and positive data have provided support to global equities in recent weeks.