Stocks in the US and Europe have risen on news of coronavirus stimulus packages. (Reuters: Lucas Jackson)
US stocks have recorded their third rise in a row as investors await the approval of a more-than $3 trillion stimulus package.
The Dow Jones Industrial Average rallied 1,352 points, or 6.4 per cent to 22,552 at the close.
The index has increased by 21 per cent since Monday, putting it technically in a bull market, where stocks are rising.
The S&P 500 index has now recorded its biggest three-day percentage gain since 1933.
It gained 155 points, or 6.2 per cent to 2,630. The Nasdaq Composite added 413 points or 5.6 per cent to 7,798.
European stocks also increased, with London’s FTSE 100 index putting on 128 points or 2.2 per cent to 5,816.
The Australian market looks set to rise for the fourth day in a row with the ASX SPI 200 index up 3.6 per cent in futures trade to 5,302.
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G20 pledges $US5 trillion
The rallies came as the leaders of the world’s biggest economies pledged to do whatever necessary to fight the coronavirus.
On a video conference call overnight, the G20 promised to inject $US5 trillion ($8.2 trillion) into the world’s economy.
“The G20 is committed to do whatever it takes to overcome the pandemic, along with the World Health Organisation, International Monetary Fund, World Bank Group, United Nations, and other international organisations,” the nations said in a statement.
“We are determined to spare no effort, both individually and collectively.”
Meanwhile, the head of the US central bank has conceded the North American economy may well be in recession.
Federal Reserve chairman Jerome Powell said progress in controlling the spread of the virus would dictate when the economy could fully reopen.
His comments are an unusual acknowledgement that the economy may be shrinking before the official figures confirm it.
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More than 3 million people filed for unemployment benefits in the US last week.
That is the most on record as strict measures to contain the coronavirus saw a wave of layoffs in North America.
The news prompted a fall in the greenback.