Stock markets have gone back into reverse after a short-lived boost provided by governments’ plans to cushion the blow of the coronavirus crisis faded.The FTSE 100 plunged by 5.3% in morning trading on Wednesday – wiping out strong gains seen the day before – despite “unprecedented” measures announced by chancellor Rishi Sunak to help businesses and households weather the storm.Markets had been lifted on Tuesday by the promise of stimulus measures, with New York’s Dow Jones climbing more than 5% after President Donald Trump unveiled plans for an $850bn stimulus package, including help for airlines. Should markets be closed until coronavirus eases? It took less than 24 hours for the enthusiasm to fade, with Asian markets falling again overnight.Shanghai was down 0.2%, the Nikkei 225 in Tokyo shed 1.1% and Hong Kong’s Hang Seng fell 1.5%. Advertisement Analysts from London Capital Group said that the “magnitude of the pandemic is outweighing stimulus hopes”.They added: “As far as short-term investors’ psychology, you know that no government policy can stop the fallout from the coronavirus so you’re not ready to buy, but if the blow can be cushioned a little you’re not in quite such a panic to sell.”In response to Mr… Read full this story
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