* Oil shoots up after Trump pledge to fill strategic
reserves
* U.S. national emergency declaration unleashes $50 bln
* World FX rates year-to-date http://tmsnrt.rs/2egbfVh
(Updates throughout, adds with Trump speech, U.S. market close)
By Rodrigo Campos
NEW YORK, March 13 (Reuters) - A gauge of stocks across the
globe bounced back on Friday led by a late rally on Wall Street,
after U.S. President Donald Trump freed $50 billion to tackle
the novel coronavirus pandemic.
Oil prices shot higher after Trump, in the same speech, said
that the United States would take advantage of the recent sharp
decline in prices to fill the U.S. strategic reserves of oil
"right up to the top."
Trump's declaration of a national emergency over the virus
gave a shot to stocks which had only partly reversed the sharp
decline from Thursday. Financial markets closed a week marked by
anxiety over the economic effects of the fast-spreading disease.
"It's probably too premature to signal the all-clear, but
we're definitely taking steps in the right directions,” said
Michael Arone, chief investment strategist at State Street
Global Advisors in Boston. Markets had been disappointed in the
initial response to the coronavirus outbreak, he said.
"These are the right steps and the market is now saying,
‘OK, governments, central banks and society as a whole gets it
and they're moving forward.'”
Two weeks ago, Trump had called the now-pandemic a "hoax"
meant to damage his presidency.
Volatility is seen remaining high, with sharp moves expected
in both directions and across asset classes. The S&P 500 closed
up 9.3% a day after falling 9.5%. The index's weekly decline was
8.8%.
On Friday, the Dow Jones Industrial Average .DJI rose
1,985 points, or 9.36%, to 23,185.62, the S&P 500 gained 230.38
points, or 9.29%, to 2,711.02 and the Nasdaq Composite .IXIC
added 673.07 points, or 9.35%, to 7,874.88.
Earlier, the pan-European STOXX 600 index .STOXX rose
1.43%.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 5.27% after falling by the largest percentage on record
on Thursday. Its weekly decline was 12.4%.
Nikkei futures NKc1 rose 5.63%.
U.S. Treasury yields rose as stocks rallied and as liquidity
remained scarce.
Benchmark 10-year notes US10YT=RR last fell 41/32 in price
to yield 0.9829%, from 0.852% late on Thursday.
Justin Hoogendoorn, head of fixed income strategy and
analytics at Piper Sandler in Chicago, said there were "very
little bids" in the market.
"It really does scream volatility, scream that there's a
lack of liquidity in the marketplace," he said.
Italy, where the COVID-19 death toll shot past 1,000 people,
saw its borrowing costs spike by about 73 basis points this week
- the most for any week since 1994. Bond yields rose across the euro zone as investors'
expectations grew for fiscal stimulus in the region to combat
the coronavirus pandemic. GVD/EUR
U.S. crude CLc1 rose 4.54% to $31.73 per barrel and Brent
LCOc1 was last at $34.97, up 5.27% on the day. Despite the
sharp gains, oil prices posted their largest weekly drops since
2008.
The dollar extended its previous session's gains, while the
yen felt the pressure of risk-on trading. Market participants
said signs of dollar funding stress persist and policymakers
probably need to do even more.
"Underlying concerns regarding the economic fallout from the
coronavirus on credit markets broadly remain," said Shaun
Osborne, chief FX strategist at Scotiabank in Toronto.
"It may be tempting to look for signs of a low in global
stocks but with the underlying issue - the coronavirus - still
unchecked, we think that is premature at this point," he added.
The dollar index =USD rose 1.019%, with the euro EUR=
down 0.7% to $1.1105.
The Japanese yen weakened 3.05% versus the greenback at
107.94 per dollar, while sterling GBP= was down 2.3% on the
World stocks set for largest weekly drop since Oct 2008 https://tmsnrt.rs/2wPc5lV
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