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Global stocks rose Monday after the U.S. government issued an “emergency use permit” for the use of blood plasma for COVID-19.
Investors have looked beyond the growing number of new coronavirus infections in Europe and have chosen to focus on US signals that they will likely soon deliver a vaccine.
The vaccine candidate is being developed through AstraZeneca in coordination with scientists at the University of Oxford, but does not fit the number of participants required for FDA approval.
Trump said FDA approval for convalescence plasma use was a “big breakthrough” in the coronavirus remedy, although it’s still unclear whether the remedy actually works.
“Donald Trump risked undermining confidence by calling COVID-19 a “Chinese virus” in the ad,” said Connor Campbell, SpreadEx’s money analyst.
“However, markets were willing to look beyond the president’s geopolitics to celebrate this moment of progress.”
Trump’s willingness to deliver a vaccine ahead of the November 3 election “could change the rules of the game for the president while seeking a temporary mandate,” said Craig Erlam, senior market analyst at OANDA.
Analysts said investors would look toward the Kansas City Fed’s Jackson Hole Virtual Economic Symposium later this week, where central bank president Jay Powell is expected to provide new key points on the bank’s financial policy review.
Jackson Hole is most likely Powell’s first public speech since the Fed’s policy assembly last July, when the bank reaffirmed its commitment to use all the necessary equipment for the economy.
Here is a market summary at 11:50 a.m. in London (6:50 a.m. ET):
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