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European stocks and Dow futures rise after Trump push on coronavirus treatments

Europe Markets

FDA Commissioner Stephen Hahn looks on as President Donald Trump announces that the Food and Drug Administration is issuing an emergency authorization for blood plasma as a coronavirus treatment during a press conference in James S. Brady Briefing Room at the White House on on August 23, 2020 in Washington, DC.


Pete Marovich/Getty Images

European stocks rose Monday, as drug stocks climbed after President Donald Trump signaled an aggressive stance to push medical treatments to return the economy closer to normalcy.

After slipping 0.8% last week, the Stoxx Europe 600
SXXP,
+1.71%

jumped 1.4%.

The French CAC 40
PX1,
+2.18%

rose 1.9%, and the German DAX
DAX,
+2.28%

and U.K. FTSE 100
UKX,
+1.87%

also gained ground.

Futures on the Dow Jones Industrial Average
YM00,
+0.76%

rose 175 points.

After Trump accused the Food and Drug Administration of trying to sabotage his re-election efforts, the FDA gave emergency approval for the use of blood plasma from recovered coronavirus patients, which hasn’t been proved by scientific trials. The Financial Times said Trump may order the FDA to grant approval to the University of Oxford vaccine to be distributed by AstraZeneca by the same manner.

AstraZeneca
AZN,
+3.04%

shares rose 2%.

While there’s no major economic report due for release on Monday, attention is building to the annual Jackson Hole conference, where Federal Reserve Chairman Jerome Powell is expected to outline the central bank’s new inflation strategy. Bank of England Gov. Andrew Bailey also will address that conference.

Shares of BT Group
BT.A,
+5.10%

climbed 6% after Sky News reported the telecoms giant has asked Goldman Sachs to update its defense strategy from possible suitors. BT shares have been hurt after slashing its dividend. BT hasn’t yet received any takeover approaches, the report said.

Shares of Bunzl
BNZL,
+3.82%

rose nearly 4% as the distribution and outsourcing company reinstated dividends and announced two acquisitions.

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