London World stock markets rallied strongly Tuesday after the US Federal Reserve launched an unprecedented bond-buying plan, the latest salvo in a global counter-attack against fallout from the coronavirus outbreak.
European equities charged higher as investors shrugged off grim survey data showing collapsing eurozone and UK business activity in March, followed by Wall Street which also surged at the opening bell in New York.
The dollar beat a retreat from Monday's three-year peak against the euro on the Fed news. London stocks won more support after Britain became the latest western nation to implement a nationwide lockdown to help curb the spread of COVID-19.
"Stock markets in Europe are higher... as traders picked up the bullish baton from the indices in Asia," said CMC Markets UK analyst David Madden, who also noted that traders had been expecting the "brutal" survey data.
"Political fighting in the US has prevented a stimulus scheme from being revealed earlier, but dealers are optimistic nonetheless," he added. US senators remain gridlocked, with Democrats on Monday again blocking a nearly $2 trillion rescue package for the economy
