Equities gain on coronavirus treatment hope; oil advances

Bloomberg

Stocks rallied globally and bonds slipped amid hopes for a breakthrough in fighting the coronavirus. Crude oil advanced with industrial metals.
Futures on the three main American indexes all turned higher and the Stoxx Europe 600 Index rebounded after a string of reports on possible vaccines or treatments for the deadly pathogen. Contracts on the S&P 500 Index climbed as Tuesday’s the surge in tech stocks continued in premarket trading for Apple Inc and Nvidia Corp. Gilead Sciences Inc edged lower after jumping this week on speculation over its antiviral drug.
Asian equities notched their first back-to-back daily gain in two weeks, even as quarantines were set up in the Chinese base of iPhone maker Foxconn, at land borders with Hong Kong, on a cruise ship off Japan and US military bases.
Crude oil headed for its first gain in six sessions in New York trading. Havens including the yen, Swiss Franc and Treasuries all slipped.
Investors are riding on optimism while weighing corporate warnings about the impact of the illness and the latest reports on containing the virus, though mooted treatments may still be a long way from the clinical-trials stage.
Chinese television reported possible progress in the hunt for a coronavirus treatment.
Sky News said UK scientists made significant progress for a vaccine though human trials wouldn’t begin for a few months. Chinese researchers have applied for a local patent on an experimental Gilead drug that they believe might fight the pathogen that’s infected more than 24,000 people.
“Against a somewhat improved backdrop, markets appear healthier this morning,” said Nema Ramkhelawan-Bhana, an analyst at Firstrand Bank Ltd In Johannesburg.
Elsewhere, Singapore’s dollar fell after that city’s central bank said there was room for easing. Tesla Inc’s stock held steady in the pre-market after earnings. One China supplier climbed by the 10% limit for a second day on Wednesday, helping the ChiNext Index recoup post-Lunar New Year losses.
The Reserve Bank of India’s interest rate decision is due on Thursday.
German factory orders for December are due on Thursday, followed by industrial production on Friday. The US employment report for January is set for Friday release.
Futures on the S&P 500 Index climbed 0.8% in New York. Nasdaq 100 Index futures increased 0.9%. The Stoxx Europe 600 Index gained 1.2%. The MSCI Asia Pacific Index rose 0.7%.
The Bloomberg Dollar Spot Index was little changed. The British pound increased 0.2%. The euro declined 0.2% to $1.102. The Japanese yen weakened 0.1% to 109.66 per dollar.
The yield on 10-year Treasuries increased two basis points to 1.64%. The yield on two-year Treasuries rose two basis points to 1.44%.
West Texas Intermediate crude increased 2.6% to $50.86 a barrel.