How the global market rebound is playing out after coronavirus lows

Most global equities have rebounded sharply from their coronavirus lows. After falling an average 35 per cent between February and March, world markets have bounced back nearly 19 per cent. 

The sharp rebound was underpinned by trillion dollars’ worth of stimulus packages, announced by major central banks. Flattening of the curve of the number of coronavirus cases in the worst-affected areas, such as Europe and the US, provided further impetus. 

 

 

However, many believe the markets are faltering once again as the economic growth outlook remains bleak, and because it is too early to say whether the worst of the pandemic is over. 

“Despite the flattening of the curve in various geographies, the Covid-19 related situation is still evolving, with behaviour after the removal of lockdown unclear, which could continue to create volatility in financial markets,” says ICICI Securities in a note.