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Global stocks see positive growth with hopes for COVID-19 treatment

Global stocks see positive growth with hopes for COVID-19 treatment
Global stocks see positive growth with hopes for COVID-19 treatment

Stock markets are slowly experiencing a growth as regulatory bodies approve new potential treatments for COVID-19. The U.S. Food & Drug Administration has recently authorized the use of blood plasma taken from recovered COVID-19 patients as a viable treatment option.

Reportedly, the FDA provided an emergency use authorization for plasma therapy. Since then pan-regional STOXX 600 of Europe rose by 1.3% and the global benchmark added 0.4%. Moreover, MSCI’s broadest index of APAC shares outside of Japan went up by 0.8%, closing down to a six-month high point. Nikkei, a Japanese firm, reversed its initial losses and regained growth by 0.3%.

U.S. futures also indicated growth on Wall Street, raising the potential of record highs for the S&P 500. According to Shane Oliver, Chief Economist, AMP, whenever the market hears any positive news pertaining to coronavirus vaccine, the sentiments of the general public goes up. However, it is still hard to say if this therapy is an effective option against COVID-19.

The sentiments of the equity market were also strengthened by the recent advancements in the UK-based Oxford-AstraZeneca vaccine. Apparently, the U.S President, Donald Trump is planning to fast-track the use of Oxford-AstraZeneca vaccine in the US before the upcoming presidential election.

Sources cite that the US government plans to awards the “emergency use authorization” to the UK drug from the FDA. This development comes amid the ongoing report where President Trump alleges the FDA to slow down the human trials of COVID-19 vaccines. Until now, coronavirus has led to almost 805,000 deaths globally.

However, AstraZeneca says that it is yet to discuss the possibility of getting an emergency use authorization for its lead COVID-19 candidate with the US FDA. But hopes are still high on the use of convalescent plasma, which has recently received emergency authorization, to effectively cure patients suffering from coronavirus.

Source Credit: https://www.reuters.com/article/us-global-markets/global-stocks-jump-as-investors-pin-hopes-on-coronavirus-treatment-idUSKBN25K02R