* 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
* Dollar rises slightly, safe-haven yen recovers ground
* 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, with reports that patients
with severe COVID-19 symptoms had responded positively to a drug
made by U.S. company Gilead Sciences GILD.O traders an extra excuse to brush off a widely expected
slump in Chinese GDP data. .T .SS Europe's main markets .FTSE .GDAXI and Wall Street
futures rose more than 3%, putting the pan-regional STOXX 600
.STOXX up nearly 8% over the last two weeks and MSCI's
49-country world index .MIWD00000PUS. 23% off last month's
four-year lows. .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."
Nearly 150,000 people have now died from the disease, while
Friday's data from China had shown the world's second-largest
economy had contracted for the first time since recognised
records began in 1992. Gross domestic product (GDP) shrank 6.8% in the quarter
year-on-year, slightly more than expected, and 9.8% from the
previous quarter. Chinese retail sales also fell more than
expected in March, but industrial output dipped only slightly,
suggesting manufacturing may be recovering more quickly.
Asia had had a strong session. Tokyo's Nikkei .225 and
Seoul's KOPSI .KS11 both closed up over 3% and industrial
metal copper, seen as something of a bellwether of global
economic health, was up nearly 4% for the week. .T .SS MET/L
Investors are now looking at how the lockdowns that have
caused the economic numbers to crash are being gradually lifted.
Following plans announced by China and Germany, Italy, Spain
and some other parts of Europe this week, Trump laid out
guidelines on Thursday for U.S. states to emerge from shutdowns
in a staggered, three-stage approach.
"We are not opening all at once, but one careful step at a
time," Trump told reporters at the White House.
The dollar edged up to a 10-day high on the euro. Gilead
Sciences' GILD.O shares surged almost 12% in premarket Wall
Street trading meanwhile following a report that partial data on
its experimental drug remdesivir showed it might help patients
with severe virus symptoms. FIGHTERS
There was still plenty of gloomy news to navigate, however.
Credit rating firm S&P Global downgraded another clutch of
countries hit by the coronavirus and warned that even triple-A
and other top-rated nations could be cut depending on how they
manage the longer-term consequences of the pandemic.
Back in Europe though, Italy's government bonds, which have
been under pressure as the country's virus difficulties push its
debt-to-GDP ratio towards 150%, rallied again 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 rose slightly as investors returned to a cautious
view about the economic impact of the pandemic and lockdown
measures. The safe-haven yen regained some lost ground.
US/ /FRX
Spot gold XAU= fell 1.5% to $1,690 per ounce too and with
investors looking to take on more risk, copper's jump put it on
track for its best week since February 2019. GOL/
No such luck for battered oil markets, however.
U.S. crude futures CLc1 slumped as much as 8% to an
18-year low after OPEC lowered its global demand forecast on
Thursday.
Brent LCOc1 was whiplashed too, swinging back under $28 a
barrel having been up nearly 3% only to then stage another fight
back. 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.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
China GDP contributions Image https://reut.rs/2VBXiDz
World stocks shaking off the virus? https://reut.rs/34Hz6Ed
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>