Global stocks jump on coronavirus slowdown hopes; oil slips on supply fears

Stocks jumped on Monday as investors were encouraged by a slowdown in coronavirus-related deaths and new cases, while oil prices skidded after Saudi-Russian negotiations to cut output were delayed, keeping oversupply concerns alive.

Equity investors took solace as the death toll from the coronavirus slowed across major European nations including France and Italy.

US stock futures rose more than 4 per cent in early hours , trading close to its upper limit after President Donald Trump expressed hope the country was seeing a “levelling off” of the coronavirus crisis.

London’s FTSE was up 3.2 per cent in early trading, while Germany’s DAX index was 4.58 per cent higher.

“The stabilisation we are seeing in the market today is welcomed but it is something really fragile,” said Frank Benzimra, head of Asia equity strategy at Societe Generale.
 

“With a very light calendar globally today, there is enough momentum to keep the equity rally running through the course of the day and also into European time,” said Jeffrey Halley, senior market analyst, Asia Pacific, OANDA.

“All bets are off after that although I could see a couple of days of positive sentiment ahead, especially if those mortality rates keep falling.”

Australia’s benchmark index rose 4.33 per cent; Japan’s Nikkei added 4.24 per cent after a slow start while South Korea’s KOSPI index climbed 3.85 per cent. Hong Kong’s Hang Seng index was 2.21 per cent higher.