Markets mixed as world economy faces “deepest recession of our lives”

Markets were mixed on Wednesday.

The S&P 500 surged 3.4 percent and the Nikkei 225 jumped 2.1 percent but the STOXX Europe 600 was flat and the Shanghai Composite fell 0.2 percent.

Oil prices surged, with West Texas Intermediate crude rising 6.2 percent.

“This week, we’re starting to see folks shift to being more hopeful that maybe the social distancing measures can be relieved sooner rather than later,” said Michael Arone, chief investment strategist at State Street Global Advisors.

Still, the news on COVID-19 remain grim, with daily deaths in New York and New Jersey from the disease hitting records on Wednesday.

Meanwhile, measures imposed to slow the spread of the pandemic are pushing the world economy into a recession.

“During the first two quarters of the year, the economies of Western countries are collapsing,” said Philippe Waechter, economist at Ostrum Asset Management.

WTO chief Roberto Azevedo warned the world is facing the “deepest economic recession or downturn of our lives”.