Light always follows dark. Day follows night. After bad news comes good.
The FTSE index closing at 5,367 meant an unexpected 7.5% rise, and for the average trader, a day such as that gives some considerable hope.
Indeed, it’s the biggest rise in a single day for 12 years.
News of a $2trn US stimulus package, that will be formally signed off later on Wednesday, no doubt sparked the upward curve.
Agreed by Senate leaders on Tuesday evening, the package is expected to provide aid for small businesses, hospitals, local government and the travel industry. There should also be direct payments made to US households.
Japan’s Nikkei rose by 8% and Hong Kong was almost 4% up at the start of Wednesday trading, delighting the forecasters.
Though business slowed later in the day, US futures remained positive, and after days of turmoil, the upturn was just the fillip that the world’s largest economy needed.