Equities on European markets were higher in premarket on Tuesday after German and French finance ministers, Olaf Scholz and Bruno Le Maire, agreed yesterday to “act decisively” to counter the potential novel coronavirus (COVID-19) impact on their countries. Meanwhile, the United Kingdom is expected to announce a nationwide “action plan in response to” the outbreak later in the day.
Global markets have rebounded on hopes that central banks will coordinate some kind of monetary policy response to lessen the economic impact of the coronavirus. Global financial ministers and central bankers will hold a conference call on Tuesday to coordinate their response to the outbreak.
The teleconference call will be led by U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell on Tuesday at 7 a.m. ET, CNBC’s Steve Liesman reported. Representatives of the Group of Seven (G-7) industrialized nations will attend the call.
The G-7 is expected to issue a statement on Tuesday or Wednesday reported Reuters. However, a G-7 official with direct knowledge of the deliberations told the news agency that for now, the draft statement does not specifically call for new government spending or coordinated interest rate cuts by central banks.
FTSE 100 LONG (Buy)
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