Last week, the rapidly spreading virus caused stock markets to suffer immensely as they showed their worst weekly performance since the 2008 Global Financial Crisis.
On Friday, the US Federal Reserve pledged to stop any further drastic falls on global stock markets. Japan’s central bank released a similar statement on Monday, announcing that it would help protect markets from the coronavirus’ impact.
In response to the united support from major central banks, London’s FTSE 100 index grew by almost 3 per cent in early trading.
There is hope that central banks from around the world will work together to support and secure global financial markets as the pandemic continues to escalate.
The Bank of England continues to evaluate potential effects on the global and UK financial systems as it monitors the outbreak´s development.
A spokesman for the Bank of England said: “The Bank is working closely with HM Treasury and the FCA (Financial Conduct Authority) – as well as our international partners – to ensure all necessary steps are taken to protect financial and monetary stability.”
Haruhiko Kuroda, Bank of Japan (BOJ) Governor, released a rare emergency statement that said the central bank would generate efficient strategies to stabilise financial markets.
The statement says: “Overseas and domestic financial markets continue to make unstable movements due to heightening uncertainty over the impact on the economy from the spread of the coronavirus.”
Asian markets reacted positively to the above news as China´s Shanghai Composite index increased by 3.2 per cent; meanwhile, Japan´s benchmark index, the Nikkei 225, ended the day 1 per cent higher.