European stocks rose on Monday, as drug stocks climbed after President Donald Trump signaled an aggressive stance to push COVID-19 medical treatments to return the economy closer to normalcy.
After slipping 0.8% last week, the Stoxx Europe 600
Futures on the Dow Jones Industrial Average
rose 216 points.
After Trump accused the Food and Drug Administration of trying to sabotage his re-election efforts, the FDA gave emergency approval for the use of blood plasma from recovered coronavirus patients, which hasn’t been proved by scientific trials. The Financial Times said Trump may order the FDA to grant approval to the University of Oxford vaccine to be distributed by AstraZeneca by the same manner.
“The drug in question still has a long way to go in terms of development, but the bulls have jumped on the story. Keep in mind that stocks were coming from a low base as markets fell on Friday on the back of the largely disappointing manufacturing and services data from France and Germany,” said David Madden, market analyst at CMC Markets U.K.
While there is no major economic report due for release on Monday, attention is building to the annual Jackson Hole conference, where Federal Reserve Chairman Jerome Powell is expected to outline the central bank’s new inflation strategy. Bank of England Governor Andrew Bailey also will address that conference.
Shares of BT Group
climbed 5%, after Sky News reported the telecoms giant has asked Goldman Sachs to update its defense strategy from possible suitors. BT shares have been hurt after slashing its dividend. BT hasn’t yet received any takeover approaches, the report said.
Shares of Bunzl
rose nearly 4%, as the distribution and outsourcing company reinstated dividends and announced two acquisitions.