Global stocks and oil prices rally on coronavirus drug hopes

Financial markets in Europe and the U.S. jumped Wednesday morning with traders reportedly buoyed by scientific efforts to treat the new coronavirus. Early Wednesday, Sky News reported a “significant breakthrough” by scientists at Imperial College London in the U.K., who claim to have reduced a stage of the development time for a coronavirus vaccine from “two to three years to just 14 days.”

The lead scientist told the media outlet he would start testing it on animals as early as next week. Another separate media report out of China Wednesday claimed that researchers within the country had found two separate drugs that can inhibit the effect of the new strain of the coronavirus.

The Stoxx 600 index, which represents Europe’s largest-listed companies, extended gains throughout Wednesday morning, notching a 1% gain for the session, and was only two points from touching an all-time high. U.S. stocks also surged at the open of trade with the Dow Jones Industrial Average moving higher by 300 points. All three major U.S. indexes are on course to finish higher for the third straight day. Stocks stateside were also boosted after U.S. private payrolls rose by 291,000 in January —the biggest monthly payrolls gain in nearly five years.

An upward revision to both U.K. and euro zone services and manufacturing data for January also boosted sentiment in equities. The move follows a blockbuster Tuesday session for Europe’s stocks which erased year-to-date losses. Meanwhile, oil prices — weighed down in recent days by demand concerns — also rose. Brent crude futures were up by 2.5% at 10:30 a.m. London time, at $55.30 per barrel.