European stocks bounce off lows on virus treatment hopes By Reuters

European stocks bounce off lows on virus treatment hopes By


© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt

By Sruthi Shankar

(Reuters) – European stocks bounced from a two-week low on Monday as signs of progress in developing a COVID-19 treatment offset fears about a resurgence in virus cases across the continent that could risk stifling an economic recovery.

The pan-European STOXX 600 index () rose 1.3%, mirroring gains for Asian markets after the U.S. health regulator said on Sunday it authorized the use of blood plasma from patients who have recovered from COVID-19 as a treatment.

Spain’s Grifols (MC:), one of the world’s top producers of treatments based on human plasma, gained 3%.

AstraZeneca Plc (L:) jumped 2.5% after the Financial Times reported the Trump administration was considering fast-tracking an experimental COVID-19 vaccine being developed by the company.

“The weekend’s vaccine news is at the fore,” said Keith Temperton, an analyst at Lombard Forte. “But we’re in this mid-summer volume vacuum, where the path of least resistance is higher.”

Oil and gas companies () led the surge in Europe, gaining from a rise in crude prices as storms closed in on the Gulf of Mexico, shutting more than half its oil production. [O/R]

Technology (), mining () and chemical () companies also rose nearly 2%.

British telecoms company BT Group (L:) jumped 4.3% after a media report that its board was preparing to defend it against takeover approaches from rivals and buyout firms.

The gains in European equities come after a lacklustre week that saw data pointing to a stalling business recovery in the euro zone amid a surge in coronavirus cases.

A UK government data showed on Friday the reproduction “R” number of COVID-19 infections had risen and may now be above 1, indicating a risk that the overall epidemic is growing.

Similarly, Germany, France and Spain have seen a surge in virus cases, with their leaders looking at tightening travel restrictions.

“The way we’re looking at the COVID narrative seems to be changing. The market is looking at a better situation in terms of hospitalisation and death rates,” Temperton said.

Shares in British Airways-owner IAG (L:) dropped 0.5% and Air France (PA:) dipped 0.4% after the UK government said travellers to France are required to self-certify that they are not suffering coronavirus symptoms or have been in contact with a confirmed case within 14 days preceding travel.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *


About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.


CONTACT US

CALL US ANYTIME