European markets closed higher Monday as investors focused on the prospect of economic recovery and progress on potential coronavirus drugs, shrugging off concerns about a further acceleration of the pandemic.
European markets
The pan-European Stoxx 600 provisionally closed almost 1.6% higher, with banks jumping 3.9% to lead gains as all sectors and major bourses entered positive territory.
The European Commission said Friday that conditional approval had been granted for Gilead's antiviral drug remdesivir to be used in the EU, making it the first authorized treatment for the virus in the region. The Sunday Times newspaper then reported that the U.K. is closing in on a £500 million ($624 million) supply deal with Sanofi and GlaxoSmithKline for 60 million doses of a potential vaccine.
The World Health Organization said Saturday that more than 200,000 coronavirus cases were confirmed worldwide over a 24-hour period – a new record – with the Americas accounting for around 130,000 new cases. In the U.S., Florida and Texas reported record increases in new daily cases on Saturday, while cases rose in 39 states.
On Wall Street, shares also rallied as investors looked passed a continued rise in Covid-19 cases. Data from the Institute for Supply Management showed a surprise expansion in the U.S. services sector. The firm's nonmanufacturing index rose to 57.1 in June, topping a Dow Jones estimate of 50.1.
Meanwhile in corporate news, Commerzbank CEO Martin Zielke and chairman Stefan Schmittmann were ousted on Friday following a shareholder revolt led in part by U.S. private equity firm Cerberus Capital Management, with the search for new leadership taking center stage this week.
Banks surge
Banking stocks led a broad cyclical rally, with Commerzbank and HSBC climbing around 7%. British housebuilders Barratt Developments, Vistry and Persimmon also jumped 8%, 7% and 6% respectively.