Asian and European equity markets rebounded Monday as some of the world's worst-hit countries reported falling death rates, providing much-needed hope in the battle against coronavirus, but oil prices sank after a meeting of top producers was delayed.
While deadly COVID-19 continues its deadly sweep across the planet, with more than 1.25 million now declared infected and nearly 70,000 dead, news out of Europe that the rise of fatalities was easing has lifted spirits on trading floors.
Italy reported its lowest daily death toll in two weeks, while Spanish officials said deaths fell for the third straight day and France reported its lowest daily toll in a week.
In early afternoon eurozone deals, Frankfurt stocks rallied 4.5 percent, Paris won 3.7 percent, Madrid gained 3.0 percent and Milan added 3.2 percent.
"European markets are trading higher because investors are shrugging off the pessimism," said AvaTrade analyst Naeem Aslam.
"They are focused on more optimistic things: the slowing death rate caused by coronavirus. Italy, Spain, France, and Germany have all seen declining numbers." London jumped 2.1 percent nearing midday, with gains capped by news that British Prime Minister Boris Johnson was hospitalised for precautionary tests after suffering "persistent" coronavirus symptoms for ten days.
More From This Section
The pound however rose as officials insisted that Johnson was "still very much in charge of the government".
Elsewhere, South Korea saw the fewest new cases in six weeks, Australian new infections were also dropping and Donald Trump said the US was showing signs of stabilising, despite the number of cases there passing 335,000 -- the highest in the world.
Markets also shrugged off data Friday showing a massive drop in US jobs in March that added to news that millions of people had applied for unemployment benefits.
Tokyo, Sydney and Manila all rose more than four percent, while Seoul, Singapore and Jakarta gained almost four percent. Hong Kong jumped 2.2 percent, while Shanghai was closed for a holiday.
Attention this week will be on a planned meeting of OPEC and other key crude producers aimed at easing a supply glut that had sent oil prices crashing.
Both main contracts had soared last week as Trump said Saudi Arabia and Russia would hold talks on ending their price war, while it also emerged OPEC would be holding a teleconference on Monday.
However, investors were dealt a blow over the weekend when the meeting was delayed to Thursday.
Analysts warned there were doubts that the US would take part in them, which could be a major sticking point for Moscow and Riyadh.
But even if a deal is reached, there is scepticism that suggested cuts of 10 million barrels a day will be enough to help the oil market, owing to a collapse in demand caused by the pandemic.
London - FTSE 100: UP 2.1 percent at 5,530.60 points Frankfurt - DAX 30: UP 4.5 percent at 9,957.66 Paris - CAC 40: UP 3.7 percent at 4,308.67 Milan - FTSE MIB: UP 3.2 percent at 16,902.63 Madrid - IBEX 35: UP 3.0 percent at 6,778.20 EURO STOXX 50: UP 4.0 percent at 2,769.36 Tokyo - Nikkei 225: UP 4.2 percent at 18,576.30 (close) Hong Kong - Hang Seng: UP 2.2 percent at 23,749.12 (close) Shanghai - Composite: Closed for a holiday New York - Dow: DOWN 1.7 percent at 21,052.53 (close) Brent North Sea crude: DOWN 3.1 percent at $33.06 per barrel West Texas Intermediate: DOWN 2.5 percent at $27.63 per barrel Euro/dollar: DOWN at $1.0790 from $1.0801 at 2100 GMT on Friday Dollar/yen: UP at 109.23 yen from 108.55 Pound/dollar: UP at $1.2296 from $1.2269 Euro/pound: DOWN at 87.74 pence from 88.