Europe open: 'Mini' trade deal, US Covid-19 treatment boost stocks

Stocks began the week with solid gains as investors cheered news that US health regulators had cleared the use of a potentially key treatment for Covid-19, convalescent plasma.

Much market commentary indicated that the treatment's use was experimental and yet to be proven, although some of the literature that it was the only treatment that had proven useful during the 1918 epidemic and on 31 July, the European Commission dubbed the result of research into the efficacy of convalescent plasma as "promising" with full clinical trial results said to be forthcoming".

Also at the weekend, negotiators from the European Union and US agreed on a mini trade deal around US lobster fishermen, potentially paving the way for more such deals.

"European markets have kicked off the week in style, with the FDA’s decision to approve the convalescent plasma coronavirus treatment raising hopes that we could see a vaccine fast-tracked before long," said IG analyst Josh Mahony.

As of 1100 BST the pan-European Stoxx 600 was 2.29% higher to 13,057.33, alongside a 1.7% jump for the Cac-40 to 371.36, while the FTSE Mibtel was adding 1.97% to 20,083.78.

Cyclical areas of the market were topping gains, with the Stoxx 600 sector sub-index for Oil and Gas climbing 3.12% to 212.68.

Travel and Leisure issues on the other hand were conspicuously weaker, giving back 0.23% to 175.33.

Pushing crude oil futures higher were disruptions to US output linked to the approach of two storms, Marco and Laura.

Front-dated Brent was last adding 0.74% to $44.68 a barrel on the ICE.