Stocks Jump As China Announces Plan To Help Manufacturing
More specifically China’s Ministry of Industry and Information Technology announced that it would work to ensure that factories are connected to tech companies so that manufacturing demands are met.
As a result, the Dow Jones Industrial Average rose by 0.6%. This jump is substantial given that the Dow has undergone three days of decline in value. Other indexes have also increased in value including the S&P 500 and Nasdaq.
Proposed action from the government is ensuring investors that the economic effects of the coronavirus outbreak will be contained. Currently the virus has infected 75,200 people throughout the world and has a death toll of 2,000.
Other indexes in other global stock exchanges have increased in response to the intended actions of the Chinese government. Europe’s Stoxx Europe 600 and Japan’s Nikkei 225 each increased in value by close to 1%.
“The market doesn’t have much of a problem with anything at the moment,” said Paul Ashworth, the chief U.S. economist at Capital Economics.