Six-day losing streak ends as central banks begin to act
The S&P/NZX 50 Index gained 242.88 points, or 2.2 percent, to 11,346.31. Within the index, 41 stocks rose, seven fell, and two remained unchanged. Turnover was $228.7 million.
Markets had been shaken by the continued spread of covid-19 and its impact on global growth, but sentiment turned positive after the US Federal Reserve, the Bank of Japan, the Bank of England and the European Central Bank suggested they were all ready to act. And today, the Reserve Bank of Australia cut its target cash rate 25 basis points to a record low 0.5 percent.
Asian markets followed a strong lead on Wall Street where the three main indices all ended close to 5 percent higher. Hong Kong's Hang Seng climbed 0.8 percent Shanghai’s SSEC rose 1.4 percent. Australia's S&P/ASX 200 Index was up 0.8 percent.
Grant Davies, an investment adviser at Hamilton Hindin Greene, said the positive lead from Wall Street had flowed through to the local market and was the driving factor ahead of the RBA announcement.
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