Europe: Markets extend gains at open

[LONDON] Europe's main stock markets climbed further in opening deals on Tuesday, mirroring Asian gains on hopes for a vaccine to treat coronavirus, dealers said.

Share prices across Europe had already won a shot in the arm in Monday following a US$542 billion French-German agreement to help the European Union economy combat Covid-19 fallout.

At the opening bell, London's benchmark FTSE 100 index of major blue-chip firms rose 0.7 per cent to 6,091.64 points, compared with Monday's close.

In the eurozone, Frankfurt's DAX 30 index won 1.0 per cent to 11,174.37 points and the Paris CAC 40 gained 0.5 per cent to 4,519.24.

New York stocks had soared Monday after US biotech firm Moderna reported "positive interim" results in early testing of a vaccine candidate, with some analysts suggesting that if all goes well it could be in use by the end of the year.

"Shares on Wall Street surged during Monday's session after drug company Moderna reported positive data on early stage coronavirus vaccine trials," noted Scope Markets analyst James Hughes.

"Stocks in Europe and Asia followed suit," he added.

Europe's bourses were boosted Monday after France and Germany on Monday proposed a vast fund to finance recovery of the EU's economy from the devastation wrought by the coronavirus crisis.

Investors have meanwhile shrugged off US President Donald Trump's surprise announcement that he is taking hydroxychloroquine, an anti-malaria drug that his own government experts say is not suitable for fighting the novel coronavirus.

AFP