Corporate America comes under the spotlight as earnings loom. ©GETTY IMAGES NORTH AMERICA/AFP SPENCER PLATT

 

London (AFP) – World stock markets advanced Monday, helped by investor confidence in upcoming US quarterly earnings and the business outlook, and by hopes for progress towards a coronavirus vaccine, dealers said.

A spike in COVID-19 infections across the globe kept a lid on gains, they said.

“The mood remains upbeat as the new week kicks off and US earning season moves into focus,” said City Index analyst Fiona Cincotta.

Results from JP Morgan, Citigroup, Wells Fargo, Goldman Sachs, Netflix and Johnson & Johnson would help give further insights into corporate America’s performance following the full coronovirus lockdown, she said.

Weak earnings for the quarter to June “should be priced in” already, said Fawad Razaqzada at ThinkMarkets.

“What investors will be looking for more than anything is forward guidance,” he said.

On Wall Street, the Dow Jones index stood more than 400 points higher in the late New York morning.

Key European stock markets were well over one percent up by the close.

Earlier, Asia had led the way with solid gains across the region.

Oil prices fell on festering fears over demand-destroying coronavirus, and before this week’s expanded OPEC+ technical gathering of key crude producers who are expected to curb production cuts.

– Sense of virus optimism –

Investors welcomed comments on Friday from the head of German biotech firm BioNTech who said a vaccine candidate would be ready for regulatory review by the end of the year, while Gilead Sciences said its drug remdesivir had been relatively effective in clinical trials.

“There was a sense of optimism circulating on the back of hopes for a treatment for coronavirus,” said CMC Markets analyst David Madden.

Trillions of dollars in government support is keeping global equities well supported, but confidence is being strangled by the spread of the disease, with an explosion of cases forcing some countries to reimpose containment measures just weeks after easing lockdowns.

In Paris, Ubisoft shares dived after the gaming company revealed over the weekend that its second most powerful executive was among the senior staff to have left the firm as it pursues an internal investigation into sexual harassment allegations.

Last month the French company, one of the world’s largest video game publishers whose portfolio includes Assassin’s Creed and Far Cry, launched a probe after allegations of sexual misconduct were shared online.

Serge Hascoet, chief creative officer and the company’s second-in-command, has now resigned along with human resources director Cecile Cornet, Ubisoft said.

– Key figures around 1540 GMT –

London – FTSE 100: UP 1.3 percent at 6,176.19 (close)

Frankfurt – DAX 30: UP 1.3 percent at 12,799.97 (close)

Paris – CAC 40: UP 1.7 percent at 5,056.23 (close)

EURO STOXX 50: UP 1.6 percent at 3,350.00

New York – Dow: UP 1.7 percent at 26,514.01

Tokyo – Nikkei 225: UP 2.2 percent at 22,784.74 (close)

Hong Kong – Hang Seng: UP 0.2 percent at 25,772.12 (close)

Shanghai – Composite: UP 1.8 percent at 3,443.29 (close)

West Texas Intermediate: FLAT at $40.56 per barrel

Brent North Sea crude: DOWN 0.1 percent at $43.19

Euro/dollar: UP at $1.1364 from $1.1300 at 2100 GMT

Dollar/yen: UP at 107.24 yen from 106.93 yen

Pound/dollar: DOWN at $1.2611 from $1.2622

Euro/pound: UP at 90.10 pence from 89.53

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Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.