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

Published 25/08/2020, 05:10 am
© Reuters.
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(Adds oil and gold settlement prices)

* S&P 500, Nasdaq set all-time peaks

* Apple shares cross $500, Alibaba (NYSE:BABA) at record high

* Dollar gains on optimism over COVID-19 treatments

* 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) - A gauge of global equity markets neared a record high on Monday, as coronavirus treatment hopes bolstered risk appetite and lifted the S&P 500 and Nasdaq to all-time peaks, which buoyed the dollar.

U.S. regulators on Sunday authorized the use of blood plasma from recovered COVID-19 patients as a treatment option. Shares of AstraZeneca rose on a Financial Times report that the U.S. government was considering fast-tracking its experimental vaccine. U.S. Food and Drug Administration's move to give emergency authorization for the use of anti-body rich plasma was hailed by President Donald Trump. It came a day after he accused the FDA of impeding the roll-out of treatments until after the Nov. 3 presidential election. World Health Organization was cautious about endorsing the use of the plasma to treat those who are ill, saying evidence that it works remains "low quality." announcement came on the eve of the Republican National Convention. Trump on Monday was formally nominated as the party's candidate for the presidency for another four years. Erlam, senior market analyst at OANDA in London, said that while it was a highly political move on Trump's part, "everyone wants to be the first to market, everyone wants to get the economy back on track and slow down the death rate."

"When you add it all up, it's positive COVID news for the market," he said.

Equity markets worldwide rose on the vaccine hopes. Europe's broad FTSEurofirst 300 index .FTEU3 closed up 1.62% at 1,439.54, while MSCI's all-country world index .MIWD00000PUS rose 0.83% to 575.72 after overnight gains in Asia.

The benchmark for global equity markets is less than 1% from scaling its all-time peak reached in February.

AstraZeneca AZN.L rose 2.1%, providing the FTSE 100 .FTSE index in London its biggest boost.

Shares of Apple Inc AAPL.O rose 1.1% to cross $500 for the first time, while Chinese retailer Alibaba's U.S.-listed shares BABA.N climbed 3.5%, to a record high. Shares of electric carmaker TSLA.O also set a new high before retreating 2.1%.

On Wall Street, the Dow Jones Industrial Average .DJI rose 0.87%, the S&P 500 .SPX gained 0.61%, and the Nasdaq Composite .IXIC added 0.21%.

A sharp dollar sell-off against the euro paused after the U.S. currency got a boost on Friday when data showed a recovery in U.S. business conditions, while European data showed slowing improvement.

The dollar edged higher, holding 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 at the Fed's annual Jackson Hole symposium.

The dollar index =USD rose 0.097%, with the euro EUR= down 0.01% to $1.1794.

The Japanese yen JPY= weakened 0.11% versus the greenback at 105.94 per dollar.

Oil prices strengthened as storms threatening the Gulf of Mexico shut more than half of the U.S. region's oil production and on expectations of progress in the development of a COVID-19 treatment.

Brent crude futures LCOc1 settled up 78 cents at $45.13 a barrel. U.S. crude futures CLc1 rose 28 cents to settle at $42.62 a barrel.

Gold prices fell as optimism over the FDA's authorization of a COVID-19 treatment lifted Wall Street stocks to record highs. U.S. gold futures GCv1 settled down 0.4% at $1,939.20 an ounce.

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