New York (AFP)

The New York Stock Exchange made an impressive turnaround on Monday, with investors hoping that the monetary authorities of the largest countries will develop a coordinated response to mitigate the economic impact of the new coronavirus.

Its flagship index, the Dow Jones Industrial Average, rose 5.09% to 26,703.32 points. He had just cashed in his worst week since 2008, collapsing by more than 12%.

The highly technological Nasdaq appreciated 4.49% to 8,952.17 points and the S&P 500, which represents the 500 largest companies on Wall Street, climbed 4.60% to 3,090.23 points.

After a small jump at the opening on Monday, the indices had temporarily gone back into the red after the publication of a disappointing indicator on manufacturing activity in the United States.

But investors were reassured "by the expectation of budgetary or monetary support measures," said Karl Haeling of LBBW.

They seem to be waiting "for some sort of announcement on a possible coordinated action after the telephone meeting scheduled for Tuesday" between the central bankers and G7 finance ministers, he said.

The American secretary of the Treasury, Steven Mnuchin, and the president of the American Federal Reserve (Fed) Jerome Powell will direct this meeting scheduled at 12:00 GMT, the United States presiding this year the group of the seven richest countries in the planet, Germany , Canada, United States, France, Italy, Japan and the United Kingdom.

The finance ministers of the eurozone will also meet by phone Wednesday at 13:00 GMT "to coordinate (their) responses," said French Minister Bruno Le Maire.

Market players had already been encouraged by the promises of central banks, which, from Washington to Tokyo, pledged to step up to the plate if the spread of the new coronavirus continued to durably affect the activity of populations and businesses.

Powell took the unusual step on Friday to issue a statement assuring that the institution would use the tools at its disposal to support the economy. Investors are now assessing the probability of a rate cut by half a percentage point - a rare gesture - at 100% at the next Fed meeting, according to the CME Group's futures product assessment.

The Governor of the Bank of Japan, Haruhiko Kuroda, also assured Monday that his institution would do everything possible to "guarantee the stability of the financial markets".

Enough to reassure investors a little while the new coronavirus is now hitting at least 69 countries and territories. He forced factories to close, companies to drastically limit business travel, airlines to cut flights.

Many multinationals have already warned that their financial results will suffer and economists are lowering their forecasts for global growth.

A sign of renewed investor confidence, the 10-year rate on treasury bills, which had plunged earlier in the session to 1.028%, clearly recovered and moved towards 8.50 p.m. GMT at 1.145% against 1.149% on Friday .

© 2020 AFP