GLOBAL MARKETS-Global stocks thrive on coronavirus treatment hopes

* World stocks gain for second session
* S&P futures point to possible fresh record high
* Coronavirus treatment, vaccine hopes support sentiment
* Gulf of Mexico storms lift crude oil futures
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Karin Strohecker
LONDON, Aug 24 (Reuters) - Coronavirus treatment hopes
nurtured risk assets on Monday, lifting stocks for a second
straight session and weighing on safe-haven Bunds, while markets
geared up for the U.S. Federal Reserve's annual Jackson Hole
meeting later in the week.
Europe's pan-regional STOXX 600 .STOXX rose 1.8% - its
biggest daily gain in nearly three weeks - and the global equity
benchmark .MIWD00000PUS added 0.6% after U.S. regulators
authorised the use of blood plasma from recovered patients as a
treatment option.
Their advance came on the heels of healthy gains in Asia,
where MSCI's broadest index of Asia-Pacific ex-Japan shares
.MIAPJ0000PUS jumped 0.8% to flirt with last-week's six-month
high and Japan's Nikkei .N225 added 0.3%.
U.S. futures ESc1 indicated almost a 1% gain on Wall
Street ahead, raising the prospect of another record high for
the S&P 500 .SPX .
Markets latched onto an announcement from the U.S. Food &
Drug Administration for an "emergency use authorisation" which
will allow the use of blood plasma from patients who have
recovered from COVID-19 as a treatment for the disease.
The announcement came on the eve of the Republican National
Convention, where Donald Trump will be nominated as the party's
candidate for the presidency for four more years. Sentiment was also supported by a Financial Times report
that the Trump administration is considering by-passing normal
U.S. regulatory standards to fast-track an experimental
coronavirus vaccine from the UK for use in the United States
before the presidential election in November.
"Vaccine news are giving equities another global boost,
despite the worsening in infection rates observed in many
jurisdictions," said Citi's Luis Costa.
Coronavirus infection rates have been creeping up again in
various parts of the world, especially European countries.
"In spite of its relative success in suppressing the first
wave of the virus, it's Europe that's begun to re-emerge as a
source of concern in recent days given the latest rises in case
numbers, a trend that continued through the weekend," said Henry
Allen at Deutsche Bank.
Looming large over this week was an address by Federal
Reserve Chair Jerome Powell at the Kansas City Fed Jackson Hole
symposium, where he will speak on the Fed's monetary policy
framework review.
"Fed chair Powell will speak (virtually) on the Fed's Policy
Framework Review, and we see a possibility for the Fed to shift
to an average inflation target or at the least change its
wording regarding inflation overshooting the target," SEB's Lina
Fransson said in a note to clients.
The risk-on mood also filtered through to fixed-income
markets with safe-haven German bond yields ticking up after
falling for six consecutive sessions last week, the longest
decline since January. GVD/EUR
In currency markets, the dollar index slipped and the
greenback weakened against the safe-haven Japanese yen JPY= at
105.80.
The British pound GBP= strengthened a touch to $1.3127
after declining 0.9% on Friday on lack of progress in
post-Brexit trade talks with the European Union. The euro EUR= gained 0.4% to stand at 1.1842 to the
dollar, making up most of Friday's 0.5% losses when the common
currency was hit by disappointing manufacturing activity data.
Storms bearing down on the Gulf of Mexico, shutting more
than half its oil production, helped push up crude oil futures.
Brent LCOc1 rose 34 cents to $44.69 a barrel and U.S. crude
CLc1 climbed 31 cents to $42.65. O/R
However, gold recovered from early losses to trade XAU=
0.6% higher at $1,950.01 an ounce.

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