UPDATE 2-European shares rise on COVID-19 drug hopes, upbeat outlook from corporates

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* Gilead says remdesivir helps COVID-19 patients
* AMS posts best day ever on strong forecast
* Barclays , StanChart drive rally in bank shares
* Airbus surges 10%; Daimler , Volkswagen rise after results
* Analysts expect STOXX EPS to decline 40% in Q2 -
Refinitiv

(Updates price to close)
By Sruthi Shankar and Susan Mathew
April 29 (Reuters) - European stocks rose on Wednesday, as
positive developments regarding a potential COVID-19 treatment
bolstered a rally in banks and oil stocks and shares in sensor
specialist AMS jumped on upbeat earnings.
Global sentiment got a boost after U.S. drugmaker Gilead
Sciences GILD.O said its experimental antiviral drug
remdesivir helped improve symptoms for COVID-19 patients who
were given the drug early. .N
"Risk appetite is roaring back on news that... remdesivir
met the primary endpoint," said Edward Moya, senior market
analyst at OANDA, New York.
"But traders need to exercise some caution as (the drug) has
yet to be proven safe nor effective in treating COVID-19."
The pan-European STOXX 600 .STOXX closed up 1.8% with,
shares of Airbus AIR.PA surging 10% even as its quarterly
profits plunged. The planemaker's shares hit session highs after
U.S. rival Boeing BA.N also reported quarterly
losses. Oil giants BP BP.L , Total TOTF.PA and Royal Dutch Sell
RDSa.L advanced more than 3% each as crude prices climbed on
the back of a lower-than-expected rise in U.S. stockpiles. O/R
Automakers .SXAP were buoyed after German carmaker Daimler
DAIGn.DE forecast operating profit at its Mercedes-Benz Cars &
Vans division rising in 2020, and rival Volkswagen VOWG_p.DE
said it expected to be profitable on a full-year basis.
German shares .GDAXI surged almost 3%.
Barclays BARC.L and Asia-focused Standard Chartered
STAN.L drove a rally in banks .SX7P . StanChart expects its
main markets to lead global economic recovery from the COVID-19
crisis as early as later this year, while a Barclays' investment
bank cushioned the blow for the British bank. Topping the STOXX 600 was sensor specialist AMS AMS.S , up
24.4% after saying it expected the impact from the coronavirus
in the second quarter to be limited. European shares have recouped nearly half of their losses
since the February rout as many countries move to restart their
economies following weeks-long lockdowns to curb the spread of
the coronavirus.
With global economic activity nearly halted in April
analysts are, however, predicting a sharper slump in
second-quarter earnings. Latest data from Refinitiv pointed to a
40.4% decline in profits during the period for companies listed
on the STOXX 600 versus 37% a week ago. Healthcare stocks .SXDP - a defensive sector that
typically holds steady in the wake of the health crisis - fell
1.6%.
Banks drove Italy's stocks benchmark .FTMIB up 2.2%,
helping it shrug off rating agency Fitch downgrading the
country's credit rating to just one notch above junk.
Wirecard WDIG.DE shares continued to slide after a
prominent short seller demanded the sacking of CEO Markus Braun
following a special audit of the German payments company that
was unable to verify its financial statements. All eyes will be on the release of the U.S. Federal
Reserve's statement later in the day. Expectations are also high
for more stimulus from the European Central Bank, which is due
to meet on Thursday.