Vaccine Hopes Boost Earnings for European Stocks and US Stock Futures

Posted: Jul 15, 2020 at 3:59 am ET

European stocks rose Wednesday, and US equity futures also rose as investors accepted positive news about a candidate for the coronavirus vaccine.

The Stoxx Europe 600 Index


It was up 0.8% after a 0.8% loss on Tuesday. The index is barely positive for the week. Elsewhere, the German DAX


gained 0.8% and the French CAC


it was up 0.9%. The FTSE 100


it was up 0.8%.

After the close of US markets on Tuesday, the Modern biotech group


He said his coronavirus vaccine candidate produced a “robust” immune system response in a larger group of people, and the study will move to a landmark clinical trial in July.

“Although the mismatch between the financial markets and the real economy remains in full effect, the removal of a single recessive input (the virus) through a vaccine may pave the way for a rapid economic recovery,” said Stephen Innes, chief strategist for global markets at AxiCorp.

“So the positive news about the virus vaccine can go a long way toward explaining the dissonance between the change in stock market sentiment regarding distress on Main Street,” Innes added, in a note to clients.

Later optimism was seen spreading to Wall Street, with Dow futures


up to 241 points, S&P 500 futures


Nasdaq-100 futures and 0.7% rise


up to 0.4%. US stocks closed near session highs on Tuesday, prompted by a call by Federal Reserve Governor Lael Brainard for the bank to make sustained large-scale asset purchases to help the economy recover amid a ” thick fog of uncertainty “caused by COVID-19.

Shares in Asia fell, with CSI 300


It fell 1.2% amid concerns over the tension between the United States and China. President Donald Trump said Tuesday that he signed a China sanctions bill aimed at the Beijing crackdown in Hong Kong,

Goldman Sachs


and UnitedHealth


will report earnings on Wednesday, while Europe also received a handful of corporate updates.

ASML Holding NV shares very heavy


It fell 0.9% after the microchip equipment maker reported a strong gain in second-quarter earnings, driven by higher sales, but the latter did not meet analyst expectations. The company said its 2020 growth outlook remains unchanged from the start of the year despite the coronavirus pandemic.

Burberry Group PLC


It was the biggest decline on the Stoxx 600, 5% less after the British fashion brand reported a 45% drop in first-quarter sales, and second-quarter sales are expected to drop between 15% and 20%.

Atlantia Actions


It increased 20% after the highway operator of Italian holding company Autostrade per l’Italia made a last-attempt offer to salvage its license, under threat of being stripped by the government after the collapse of a bridge in Genoa in 2018.

Citing sources, Reuters reported that Autostrade’s offer would consist of state lender Depositi e Prestiti (CDP) taking a 51% stake in Autostrade through a capital increase. Atlantia would eventually cede ownership of Autostrade.