GLOBAL MARKETS-Coronavirus hopes propel stocks, euro higher

* Early signs of virus peaking in Europe, New York
* Broad gains from London to Sydney on stock markets
* Euro races higher is first gains in seven session
* Benchmark government bonds, gold, dollar selloff
* World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By Marc Jones
LONDON, April 7 (Reuters) - World stock markets enjoyed a
second day of sharp gains on Tuesday as signs of progress
against the coronavirus in both Europe and the United States and
more liberal helpings of stimulus kept investors charging back
in.
There was an added boost from commodity markets as oil
climbed nearly 3% on supply cut hopes, while currency markets
also came alive as a tumbling dollar saw the euro race out of a
six-session rut of falls. /FRX O/R
Equities was were the main action was however. Japan's
Nikkei .N225 followed up Wall Street's 7% surge on Monday .N
with a 2% jump as its government promised a near $1 trillion
stimulus package - equal to a fifth of its GDP.
Europe quickly got in the swing of things too. The
pan-European STOXX 600 index .STOXX climbed over 3% as the
respective markets in London .FTSE , Frankfurt .GDAXI , Paris
.FCHI and Milan .FTMIB all bounded higher. .EU
"A day does not a trend make, a week does not a trend
make... but we think the market is bottoming out," said Jeff
Mortimer, Director of Investment Strategy at BNY Mellon Wealth
Management.
"We are trying to get clients to understand that (in market
performance terms) better times ahead can come more quickly then
you expected."
Worldwide, the virus has infected more than 1.3 million
people and killed over 74,000, and though the numbers are still
rising in many highly-populated countries, some tentative
improvements have given hope. In hardest-hit Italy and Spain, authorities have started
looking ahead to easing lockdowns after steady falls in fatality
rates. In the United States too, the daily number of deaths in
the country's worst-affected area, New York, has also shown
signs of steadying.
The U.S. dollar, which has been soaking up safe-haven flows
for weeks, slipped against most major currencies.
The euro shot up 0.7% to $1.0865 EUR= to snap a six-day
run of falls, the pound climbed despite Britain's Prime Minister
remaining in intensive care, and the Australian dollar AUD=D3
jumped over 1.5% to its highest in a week. AUD/
New Zealand's dollar NZD=D3 rose 1.3% too, while the
Japanese yen shook off an early dip to clamber up to 108.92 per
U.S. dollar. /FRX
It wasn't only oil driving commodities markets higher
either, copper punched up to a 3-week high with a 3% gain for
industrial metals, while safe-haven gold wilted. MET/L
Benchmark 10-year U.S. Treasuries US10YT=RR and German
Bund continued to lose out too. U.S. yields - which move inverse
to price - rose to 0.73% having fallen almost 9 basis points on
Monday, and Bund yields were up 6-9 basis points across the
curve. US/
The Eurogroup of finance ministers within the single euro
zone currency bloc are scheduled to meet later on Tuesday, and
analysts expect more joint action to help prop up the economies
of member states.
Cyprus, one of the lower-rated countries in the bloc, is
marketing a seven-year and 30-year bond issuance. In Asia
Indonesia issued a 50-year bond.
"Investors have recently been detecting growing public
support for the concept of coronabonds in European Commission
and ECB circles," said DZ Bank analyst Daniel Lenz, adding that
German ECB Executive Board member Isabel Schnabel was among
those who appeared to voice support.