By Peter Nurse
Investing.com - European stock markets posted strong gains Monday, amid optimism after U.S. authorities signed off a new potential Covid-19 treatment, while BT Group (LON:BT) soared on takeover speculation.
At 3:40 AM ET (0740 GMT), the DAX in Germany traded 1.4% higher, the CAC 40 in France rose 1.8% and the U.K.'s FTSE index was up 1.4%.
The U.S. Food and Drugs Administrations on Sunday said that it had issued ‘emergency use approval’ for the use of blood plasma from recovered patients as a treatment option for certain patients suffering from the effects of the Covid-19 virus.
Sentiment was also boosted by a Financial Times report that the U.S. administration is considering by-passing normal U.S. regulatory standards to fast-track an experimental coronavirus vaccine from the U.K. for use in America ahead of the presidential election. AstraZeneca (NYSE:AZN), the company developing this potential vaccine, gained 2.2%.
This comes as the global death toll from the coronavirus surpassed 800,000 over the weekend, with the U.S., Brazil, Mexico and India leading the rise in fatalities.
Turning back to Europe, BT Group (LON:BT) stock soared 6.9% after the telecoms giant approached Goldman Sachs (NYSE:GS) to update its defense strategy from potential suitors, Sky News reported over the weekend.
BT shares have been hurt after slashing its dividend, making it more vulnerable to a takeover, although the group has yet to receive an approach.
Elsewhere, Bunzl (OTC:BZLFY) stock rose 4% after the distribution and outsourcing company reinstated its dividend and posted a rise in pretax profit for the first half of 2020. Balfour Beatty (OTC:BAFYY) climbed 2% after the construction and engineering group said a joint venture it is involved in has received the contract to expand Hong Kong International Airport.
On the flip side, Old Mutual (LON:OMU) dropped 1.5% after the Johannesburg-based insurer posted a first-half loss with the coronavirus pandemic dragging South Africa’s economy deep into recession.
Oil prices edged higher Monday, as storms shut down more than half the Gulf of Mexico's oil production.
Hurricane Marco and tropical storm Laura wrought havoc in the Caribbean and Gulf of Mexico, leading to over 58% of offshore oil production in the region being shut down.
However, the uncertainty surrounding the Covid-19 virus and the impact it will have on global growth continue to weigh on the crude demand outlook.
U.S. crude futures traded 0.7% higher at $42.63 a barrel, while the international benchmark Brent contract rose 0.6% to $45.20.
Elsewhere, gold futures rose 0.3% to $1,953.15/oz, continuing a second consecutive week of losses. EUR/USD traded 0.1% higher at 1.1810.