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European stock index futures as Trump eyes restart

Published 17/04/2020, 07:41
Updated 17/04/2020, 08:10
© Reuters. FILE PHOTO:  The German share price index DAX graph is pictured at the stock exchange in Frankfurt

© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt

(Reuters) - European stock index futures surged on Friday, as financial markets globally drew strength from U.S. President Donald Trump's roll out of plans for a gradual re-opening of the U.S. economy and reports of a potential drug to treat COVID-19.

Euro Stoxx 50 futures (STXEc1) rose 2.5%, climbing for the fourth time in five days, while German DAX (FDXc1), French CAC (FCEc1) and FTSE 100 (FFIc1) futures jumped between 2.2% and 3.0%.

While Trump's plan was thin on detail and left decisions largely up to individual states, the benchmark STOXX 600 (STOXX) has recovered about 5% since April 6 as investors focussed on signs the coronavirus outbreak may be peaking.

Latest data showed China suffered its worst economic contraction in almost three decades, while weekly U.S. jobless claims pushed the figure for the past month above 20 million, yet there was no sign of resulting weakness on Wall Street or in Asia.

Also lifting the mood at the end of the week, a report detailed encouraging partial data from trials of U.S. drugmaker Gilead Sciences Inc (NASDAQ:GILD)'s experimental drug remdesivir in severe COVID-19 patients.

"Markets have understandably jumped on the first piece of good news in what seems like forever regarding the pandemic," said Jeffrey Halley, a market analyst at OANDA.

"If proven effective, remdesivir would be a game-changer in the COVID-19 pandemic fight, especially being a legacy drug that has been around for many years."

Evidence of the corporate damage from the outbreak continued to pile up, with Orange (PA:ORAN), France's biggest telecoms operator, becoming the latest firm to cut its dividend.

© Reuters. FILE PHOTO:  The German share price index DAX graph is pictured at the stock exchange in Frankfurt

In a bright spot, Nordic consumer goods maker Orkla (OL:ORK) reported a sales boom in March as customers stocked up on food and other essentials amid nationwide lockdowns.

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