Financial markets bounced back as rival politicians in America seemed to reach a deal on a $2 trillion rescue package for the economy.
Optimism boosted the FTSE 100 to close 9% up – the second biggest percentage rise in a day and the highest since 2008 when a jump of 9.8% was posted on November 24, 2008.
The FTSE also broke the record for the largest ever points gain in a day, surging 452 and roaring past the previous record of 431 points in a day.
The London market closed at 5,446.
Cruise company Carnival sailed into the lead as best performer, gaining 28%, while oil and mining companies Shell, BP, Anglo American and Evraz saw improvements of 20% or more.
Positive gains around the world
US markets also joined the bonanza early on as the Standard & Poor 500 and Dow Jones both added 7%.
Markets across Europe closed with positive gains as well – with the DAX in Frankfurt returning a 10.98% increase and the French CAC 40 in Paris posting an 8.39% rise.
Earlier, the Hang Seng in Hong Kong closed 4.46% up and Shanghai saw a 7.13% boost.
However, investors are actively seeking to carve out new opportunities in new world companies
Nigel Green, CEO and founder of deVere Group, a leading global wealth manager operating across 100 countries said: “Every economic downturn creates a new normal. The one being triggered by the coronavirus pandemic will be the same.
Hunt for ‘new world’ opportunities
“The Covid-19 impact has hit firms across the world – there’s been immense international disruption – with many sectors experiencing major issues of supply, demand, or both.
“However there remain some sections of the economy which are benefitting from the coronavirus fallout.”
“Sensibly, investors are now actively seeking these ‘new world’ sectors and companies in order to grow and protect their wealth.
“This is evidenced by the tech-heavy Nasdaq Composite index which has done well, where other global indices have faltered.
“New industries will come into their own and, as ever, there will be winners and losers. This will mean job losses in some sectors and huge – possibly unprecedented – job and investment opportunities in others.”