(Corrects size of weekly gains for stocks markets in paragraphs
1 and 3)
* World stocks race towards second best week on record
* Nikkei, FTSE and DAX all jump 3%
* U.S. plans to reopen economy, virus treatment hopes lift
mood
Markets take China economic contraction in stride
* Treasury yields dip, dollar steady as safe-haven demand
wilts
* U.S. oil futures slump 8% to hit 18-year low
By Marc Jones
LONDON, April 17 (Reuters) - World stock markets made a
super-charged sprint towards a second straight week of gains on
Friday after President Donald Trump laid out plans to gradually
reopen the coronavirus-hit U.S. economy following similar moves
elsewhere.
The bulls were back in business. Additional reports that
patients with severe COVID-19 symptoms had responded positively
to a drug made by U.S. company Gilead Sciences GILD.O
had helped Tokyo and Seoul surge 3% as Asia
.MIAPJ0000PUS took a widely-expected slump in Chinese GDP data
in its stride. .T .SS Europe's main markets .FTSE .GDAXI and Wall Street
futures made 3% gains in early European trading too, putting the
pan-regional STOXX 600 .STOXX up almost 8% in the last two
weeks and MSCI's 49-country world index .MIWD00000PUS. nearly
11%. .EU
"The market continues to look through terrible data... on
anticipation of economies reopening," said Steen Jakobsen, Chief
Investment Officer at Saxo Bank. "And hopes that a new drug
treatment will help lift longer term uncertainty about the
COVID-19 pandemic."
The data from China had shown the world's second-largest
economy shrank for the first time since at least 1992 because of
the coronavirus woes. Gross domestic product (GDP) contracted 6.8% in the quarter
year-on-year, slightly more than expected, and 9.8% from the
previous quarter.
Retail sales also fell more than expected in March, but
industrial output dipped only slightly, suggesting its
manufacturing sector at least is recovering more quickly.
Back in Europe, Italian bond markets, which have been under
pressure as the country's virus difficulties push its
debt-to-GDP ratio towards 150%, also rallied as France expressed
support for joint euro zone debt issuance.
European countries have "no choice" but to set up a fund
that "could issue common debt with a common guarantee", French
President Emmanuel Macron told the Financial Times on Thursday.
Failure to do so would lead to populists winning elections in
Italy, Spain, and possibly France, he also warned. Yields on ultra-safe 10-year U.S. Treasuries US10YT=RR and
German Bunds rose slightly, while Treasury futures TYc1 and
the dollar firmed against the yen JPY=EBS , in another
tentative sign of investor optimism. US/ /FRX
Spot gold XAU= fell 1.5% to $1,692 per ounce too and with
investors looking to take on more risk industrial metal copper
jumped 4% on track for its best week since February 2019. GOL/
No such luck for battered oil markets however. U.S. crude
futures CLc1 slumped 8% to an 18-year low after OPEC had
lowered of its global demand forecast on Thursday, and Brent
crude LCOc1 slipped back under $28 a barrel having been up
nearly 3% at one point. O/R
OPEC now sees a contraction of global demand of 6.9 million
barrels per day (bpd) this year due to the coronavirus outbreak.
"Downward risks remain significant, suggesting the
possibility of further adjustments, especially in the second
quarter," OPEC said of the demand forecast.
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China GDP contributions Image https://reut.rs/2VBXiDz
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