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

Published 25/08/2020, 12:34 am
© Reuters.
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(Adds U.S. market open, byline, changes dateline; previous LONDON)

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

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

* 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) - The dollar slid but a gauge of global equity markets advanced on Monday, driven by coronavirus treatment hopes that bolstered risk sentiment and lifted the S&P 500 and Nasdaq to all-time peaks.

Apple Inc AAPL.O rose 0.9% to cross $500 per share for the first time, while Chinese retailer Alibaba's U.S.-listed shares BABA.N climbed 3.3%, to a record high. Shares of electric carmaker TSLA.O also set a new high before falling -3.3%.

The U.S. Food and Drug Administration's move to use anti-body rich plasma from recovered patients was hailed by President Donald Trump and came a day after he accused the FDA of impeding the roll-out of treatments for political reasons. announcement came on the eve of the Republican National Convention, where Trump will be nominated as the party's candidate for the presidency for four more years. also geared up for the U.S. Federal Reserve's annual Jackson Hole meeting later in the week.

Europe's broad FTSEurofirst 300 index .FTEU3 added 1.48% to 1,437.53, while MSCI's benchmark for global equity markets .MIWD00000PUS rose 0.94% to 576.33 after overnight gains in Asia.

On Wall Street, the Dow Jones Industrial Average .DJI rose 0.95%, the S&P 500 .SPX gained 0.74% and the Nasdaq Composite .IXIC added 0.51%.

"Vaccine news are giving equities another global boost, despite the worsening in infection rates observed in many jurisdictions," said Citi's Luis Costa.

U.S. regulators on Sunday authorized the use of blood plasma from recovered patients as a treatment option and AstraZeneca rose on a Financial Times report that the U.S. government was considering fast-tracking its experimental vaccine. AZN.L rose 3.0%, providing the FTSE 100 .FTSE index in London its biggest boost.

Safe-haven German bond yields rose after their longest decline this year as hopes for a coronavirus treatment boosted risk appetite. German 10-year bunds yielded -0.505%.

In currency markets the dollar dipped but held 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.

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

The dollar index =USD fell 0.086%, with the euro EUR= up 0.19% to $1.1818.

The Japanese yen JPY= was flat versus the greenback at 105.81 per dollar.

Crude oil prices rose as storms closed in on the Gulf of Mexico, shutting more than half its oil production, and on signs of progress in development of COVID-19 treatments.

Brent crude futures LCOc1 rose $0.52, to $44.87 a barrel. U.S. crude futures CLc1 gained $0.28, to $42.62 a barrel.

Gold prices rose as the dollar dipped, making bullion cheaper for holders of other currencies, but hopes for progress in the treatment of COVID-19 limited gains in the safe-haven metal.

Spot gold prices XAU= fell -0.12% to $1,937.15 an ounce.

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