European Markets Bounce on Global Vaccine Hopes; Travel Stocks Surge 5.9%; Tui up 27%
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American biotech firm Novavax said Monday it started the first human study of its experimental coronavirus vaccine. The firm said it expects initial results on safety and immune responses in July.
European stocks advanced on Tuesday, tracking positive global market sentiment as optimism grows that a coronavirus vaccine can be found.
CAC 40 Index
The pan-European Stoxx 600 jumped 1.2% in early trade, with travel and leisure stocks soaring 5.9% to lead gains as all sectors, except health care and telecoms, entered positive territory.
European stocks are following the positive trend set in Asia, where stocks jumped on Tuesday afternoon after American biotech firm Novavax said Monday it started the first human study of its experimental coronavirus vaccine.
The firm said it expects initial results on safety and immune responses in July. That comes on the back of Modernas recent report of a positive development in its vaccine trial where all 45 participants had developed coronavirus antibodies.
U.S. stock futures rose on hopes of a vaccine Tuesday. It comes as the number of coronavirus cases in the U.S. topped more than 1.6 million as deaths rose to more than 98,000, a tally from Johns Hopkins University showed as of Tuesday.
Investors are also keeping an eye on tensions between the U.S. and China, which showed signs of escalation over the weekend. White House National Security Advisor Robert OBrien said Sunday the U.S. will likely impose sanctions on China if Beijing implements national security law that would give it greater control over autonomous Hong Kong.
There are no major earnings Tuesday. On the data front, German data on consumer sentiment in June is released.
Anglo-German travel operator Tui led the sectors charge to surge more than 27% in early deals, while cinema chain Cineworld jumped 18% and British Airways parent IAG climbed more than 16%.
At the bottom of the European benchmark, Italian biotech firm Diasorin slid 3.6%.