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GLOBAL MARKETS-Global stocks advance on coronavirus treatment hopes, dollar slips

Published 24/08/2020, 15:34
© Reuters.
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(Adds U.S. market open, byline, changes dateline; previous
LONDON)
* S&P 500, Nasdaq set all-time peaks
* Apple shares cross $500 mark, Alibaba also at record high
* Gulf of Mexico storms lift crude oil futures
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Herbert Lash
NEW YORK, Aug 24 (Reuters) - The dollar slid but a gauge of
global equity markets advanced on Monday, driven by coronavirus
treatment hopes that bolstered risk sentiment and lifted the S&P
500 and Nasdaq to all-time peaks.
Apple Inc AAPL.O rose 0.9% to cross $500 per share for the
first time, while Chinese retailer Alibaba's U.S.-listed shares
BABA.N climbed 3.3%, to a record high. Shares of electric
carmaker TSLA.O also set a new high before falling -3.3%.
The U.S. Food and Drug Administration's move to use
anti-body rich plasma from recovered patients was hailed by
President Donald Trump and came a day after he accused the FDA
of impeding the roll-out of treatments for political reasons.
The announcement came on the eve of the Republican National
Convention, where Trump will be nominated as the party's
candidate for the presidency for four more years. Markets also geared up for the U.S. Federal Reserve's annual
Jackson Hole meeting later in the week.
Europe's broad FTSEurofirst 300 index .FTEU3 added 1.48%
to 1,437.53, while MSCI's benchmark for global equity markets
.MIWD00000PUS rose 0.94% to 576.33 after overnight gains in
Asia.
On Wall Street, the Dow Jones Industrial Average .DJI rose
0.95%, the S&P 500 .SPX gained 0.74% and the Nasdaq Composite
.IXIC added 0.51%.
"Vaccine news are giving equities another global boost,
despite the worsening in infection rates observed in many
jurisdictions," said Citi's Luis Costa.
U.S. regulators on Sunday authorized the use of blood plasma
from recovered patients as a treatment option and AstraZeneca
rose on a Financial Times report that the U.S. government was
considering fast-tracking its experimental vaccine. AstraZeneca AZN.L rose 3.0%, providing the FTSE 100
.FTSE index in London its biggest boost.
Safe-haven German bond yields rose after their longest
decline this year as hopes for a coronavirus treatment boosted
risk appetite. German 10-year bunds yielded -0.505%.
In currency markets the dollar dipped but held above
two-year lows against the euro. Federal Reserve Chairman Jerome
Powell this week will give a highly anticipated speech about the
U.S. central bank's policy framework review.
A sharp dollar sell-off against the euro has paused, with
the greenback getting a boost on Friday after data showed a
recovery in U.S. business conditions, while European data showed
slowing improvement.
The dollar index =USD fell 0.086%, with the euro EUR= up
0.19% to $1.1818.
The Japanese yen JPY= was flat versus the greenback at
105.81 per dollar.
Crude oil prices rose as storms closed in on the Gulf of
Mexico, shutting more than half its oil production, and on signs
of progress in development of COVID-19 treatments.
Brent crude futures LCOc1 rose $0.52, to $44.87 a barrel.
U.S. crude futures CLc1 gained $0.28, to $42.62 a barrel.
Gold prices rose as the dollar dipped, making bullion
cheaper for holders of other currencies, but hopes for progress
in the treatment of COVID-19 limited gains in the safe-haven
metal.
Spot gold prices XAU= fell -0.12% to $1,937.15 an ounce.


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