European stocks close higher after 'positive' coronavirus drug trials; Deutsche Bank up 12%
- The pan-European Stoxx 600 provisionally closed around 1.8% higher, with most sectors and major bourses in positive territory.
- Global markets are awaiting the outcome of the Federal Reserve's latest policy meeting. A decision is due Wednesday at 2 p.m. ET.
- It's a busy day for earnings in Europe with Airbus, Deutsche Bank, Barclays, GSK, Standard Chartered and Volkswagen all reporting.
European markets closed higher on Wednesday after Gilead Sciences claimed it was seeing "positive data" from trials of its drug remdesivir as a coronavirus treatment.
European markets
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| .FTSE | FTSE 100 | 8,420.26 | -18.39 | -0.22% |
| .GDAXI | DAX | 18,704.42 | -34.39 | -0.18% |
| .FCHI | CAC 40 Index | 8,167.50 | -20.99 | -0.26% |
| .FTMIB | FTSE MIB | 35,398.82 | -11.31 | -0.03% |
| .IBEX | IBEX 35 Idx | 11,327.70 | +28.40 | +0.25% |
The pan-European Stoxx 600 closed around 1.8% higher provisionally, with most sectors and major bourses in positive territory.
Investor sentiment was lifted after Gilead said in a statement on Wednesday it was "aware of positive data emerging from the National Institute of Allergy and Infectious Diseases' study of the investigational antiviral remdesivir for the treatment of Covid-19."
The company said it would share data from the trials, which tested remdesivir in patients with severe coronavirus symptoms, "shortly."
Global markets are also awaiting the outcome of the Fed's two-day policy meeting that concludes Wednesday, although no action is expected from the central bank.
Stocks on Wall Street traded sharply higher on Wednesday, as Gilead's update and earnings remained in focus.
Back in Europe, Euro zone economic confidence suffered its sharpest ever decline in April, according to a monthly European Commission survey published Wednesday. Economic sentiment plunged to 67.0 in April from a downwardly-revised 94.2 in March.
Earnings in focus
It was a busy day for earnings in Europe with Airbus, Deutsche Bank, Barclays, GSK, Standard Chartered and Volkswagen all reporting.
Barclays posted a 42% fall in first-quarter net profit attributable to shareholders year-on-year, and opted to take a £2.1 billion ($2.62 billion) credit impairment charge, as it attempts to anticipate the fallout from the coronavirus pandemic. Barclays shares climbed almost 15% on the back of strong results from its investment banking division.
Standard Chartered reported a 12% fall in profit attributable to shareholders, as the emerging-markets-focused bank cited encouraging early signs of economic recovery in China. Standard Chartered shares traded nearly 12% higher.
Deutsche Bank swung to a first-quarter loss of 43 million euros and allocated a provision of 260 million euros to deal with potential loan losses as a result of the coronavirus crisis. The bank's stock was up around 12%.
Biggest movers
In terms of individual share price moves, AMS surged more than 24% after its first-quarter earnings report, in which the Austrian chipmaker projected limited impact from the coronavirus in the second quarter.
At the other end of the European benchmark, Danish hearing aid manufacturer GN Store plunged 6% after missing earnings estimates, while Germany's Wirecard continued to decline on uncertainty surrounding an independent review of its accounting practices, falling another 8% on Wednesday.