Markets around the globe rallied on Friday, as Finance Ministers of G-7 nations met to discuss the economic impact of COVID-19.
This year’s G-7 meeting was chaired by the UK, which also announced that it saw its own economy slump by a record 10% last year.
Other attendees of the meeting included U.S. Treasury Secretary Janet Yellen, as well as the Finance Ministers of Japan, Germany, France, Canada and Italy.
In a quote attributed to further Stimulus, Yellen stated “the time to go big is now.
In conclusion to today’s meeting, UK Finance Minister Rishi Sunak stated that, “Ministers and central bank governors exchanged views on how best to shape and respond to the phases of the global recovery from COVID-19, including supporting workers and businesses in dealing with the pandemic while ensuring sustainability in the long term”.
The S&P 500, DAX, 30, CAC 40 were all up on Friday as a response to the meeting.
FTSE 100 rises as COVID-19 infections drop
Another market to rally on Friday was the FTSE 100 in the UK, which was boosted by positive COVID-19 news.
London’s main index rose despite GDP data showing that Britain’s economy suffered its biggest crash in output in more than 300 years in 2020.
Rallies came in response to the news that the COVID-19 reproduction rate fell to its lowest level since July 2020.
Markets reacted positively to the news, as it increased the chances for the government to begin easing lockdowns restrictions next month.
The FTSE 100 closed 0.94% higher as a result.
U.S. Consumer Sentiment falls in February
Despite hopes of further economic Stimulus in the United States, Consumer sentiment fell in early February.
According to the Michigan’s Sentiment report, its consumer sentiment index dropped to a reading of 76.2, from a final reading of 79 in January.
This drop comes after many had forecasted that sentiment would rise to 80.8 as President Biden looks to get his $1.9 trillion Stimulus bill through the Senate.
The Dow Jones dropped for a second consecutive day and was trading 0.11% on the news.
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Senior Market Analyst