European stocks bounce off lows on virus treatment hopes
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 one of the world’s top producers of treatments based on human plasma, gained 3%.
AstraZeneca Plc jumped 2.5% after the Financial Times reported the Trump administration was considering fasttracking an experimental COVID-19 vaccine being developed by the company.
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., mining and chemical companies also rose nearly 2%. British telecoms company BT Group 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 COVID19 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.
Shares in British Airwaysowner IAG dropped 0.5% and Air France 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.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.