Global Stocks Wipe Out 2020 Decline on Stimulus, Vaccine Bets

(Bloomberg) -- Global stocks advanced, erasing their losses for the year as investors bought risk assets on bets of further stimulus measures and on the optimism of vaccine development progress.

The MSCI All-Country World Index climbed 0.2% as of 3:20 p.m. in New York, wiping off a slump that had exceeded 30% in March amid the Covid-19 pandemic.

Stocks rallied on expectations of additional government support steps after grim jobs data on Wednesday put pressure on Republicans and Democrats to resolve differences over a new U.S. virus relief package.

Unprecedented stimulus programs from the Federal Reserve to the European Central Bank, coupled with optimism about an economic rebound, have helped equities rally in recent months. Investors have largely shrugged off worries about rising coronavirus cases in parts of the world and geopolitical tensions, focusing on progress in developing a defense against the infection.

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