GLOBAL MARKETS-Coronavirus treatment hopes lifts global stocks

* World stocks gain for second session
* S&P futures point to possible fresh record high
* Coronavirus treatment, vaccine hopes support sentiment
* Gulf of Mexico storms lift crude oil futures
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Karin Strohecker
LONDON, Aug 24 (Reuters) - Equity markets gained for a
second straight session on Monday as hopes for a coronavirus
treatment boosted risk assets and markets geared up for the U.S.
Federal Reserve's annual Jackson Hole meeting later in the week.
Europe's pan-regional STOXX 600 .STOXX rose 1.3% and the
global benchmark .MIWD00000PUS added 0.4% after U.S.
regulators authorised the use of blood plasma from recovered
patients as a treatment option.
The rises follow healthy gains in Asia, where MSCI's
broadest index of Asia-Pacific shares ex-Japan .MIAPJ0000PUS
jumped 0.8% to flirt with a six-month high touched last week and
Japan's Nikkei .N225 added 0.3%.
U.S. futures ESc1 indicated gains on Wall Street ahead,
raising the prospect of record highs for the S&P 500 .SPX .
Markets latched onto an announcement from the U.S. Food &
Drug Administration for an "emergency use authorisation" which
will allow the use of blood plasma from patients who have
recovered from COVID-19 as a treatment for the
disease. "Whenever there is any news that is seen as something that
is helping the battle against coronavirus it gives a boost to
sentiment," said Shane Oliver, Sydney-based chief economist at
AMP.
Equity market sentiment was also supported by a Financial
Times report that the Trump administration is considering
by-passing normal U.S. regulatory standards to fast-track an
experimental coronavirus vaccine from the UK for use in the
United States before the presidential election in November.
Yet rising infection numbers in various parts of the world,
especially Europe, cast a cloud over the latest gains, analysts
said.
"In spite of its relative success in suppressing the first
wave of the virus, it's Europe that's begun to re-emerge as a
source of concern in recent days given the latest rises in case
numbers, a trend that continued through the weekend," said Henry
Allen at Deutsche Bank.
Looming large over this week was an address by Federal
Reserve Chair Jerome Powell at the Kansas City Fed Jackson Hole
symposium, where he will speak on the Fed's monetary policy
framework review.
"Fed chair Powell will speak (virtually) on the Fed's Policy
Framework Review, and we see a possibility for the Fed to shift
to an average inflation target or at the least change its
wording regarding inflation overshooting the target," SEB's Lina
Fransson said in a note to clients.
The risk-on mood also filtered through to fixed-income
markets with safe-haven German bond yields ticking up after
falling for six consecutive sessions last week, the longest
decline since January. GVD/EUR
In currency markets, the dollar index slipped and the dollar
weakened against the safe-haven Japanese yen JPY= at 105.83.
The British pound GBP= held steady at $1.3090 after
declining 0.9% on Friday on lack of progress in post-Brexit
trade talks with the European Union.
The euro EUR= was at $1.1800 after falling 0.5% on Friday
following disappointing manufacturing activity data.
Storms bearing down on the Gulf of Mexico, shutting more
than half its oil production, helped push up crude oil futures.
Brent LCOc1 rose 26 cents to $44.61 a barrel and U.S. crude
CLc1 climbed 24 cents to $42.58. O/R
Gold recovered from early losses to trade XAU= 0.4% higher
at $1,947.20 an ounce.

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