Oil surges, European stocks gain on hopes of a faster economic recovery from coronavirus

AP Photo/Richard Drew

• European and Asian stocks rose on Thursday as investors hoped for a prompt economic recovery from the novel coronavirus.
• Oil prices surged ahead of a critical meeting of major oil producers to discuss output cuts.
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European and Asian stocks jumped on Thursday as investors hoped for a swift recovery from the novel coronavirus pandemic.

The virus — which causes a disease called COVID-19 — has spread to more than 175 countries and territories, infected around 1.5 million people, and killed at least 88,000.

While several countries remain in lockdown, investors are more focused on Wuhan — the epicenter of the outbreak — partially lifting containment measures after 11 weeks, Connor Campbell, a financial analyst at SpreadEx, said in a morning note.

Read more: C.T. Fitzpatrick has beaten 99% of his peers since the financial crisis. He shares his 4-part strategy for dominating a coronavirus-hit market — and names 6 companies that will benefit from the fallout.

Oil prices surged on hopes that Saudi Arabia, Russia, and other major oil producers would agree to cut output during a virtual meeting scheduled for later today.

“Suggestions are that this time Russia will agree to it, which just leaves the wild-card Saudis, who started the whole race to the bottom of the bottom,” analysts at Rabobank said in a research note.

US equity futures retreated ahead of the publication of initial jobless claims. Nearly 10 million Americans filed for unemployment benefits in the last two weeks of March, and Wall Street analysts estimate another 5 million joined them last week.

Read more: A Wall Street wealth chief breaks down why the coronavirus bear market may be unique in history — and pinpoints the areas where traders should be buying right now

Here’s the market roundup as of 7:05 a.m. ET:

• European equities broadly rose, with Germany’s DAX up 0.6%, Britain’s FTSE 100 up 2.2%, and the Euro Stoxx 50 flat.
• Asian indexes followed suit, with China’s Shanghai Composite up 0.4%, Hong Kong’s Hang Seng up 1.4%, and Japan’s Nikkei flat.
• US stocks are poised for a mixed open. Futures underlying the Dow Jones Industrial Average rose 0.2%, while S&P 500 and Nasdaq fell 0.1%.
• Oil prices soared, with West Texas Intermediate up 7.7% at about $27 a barrel,  and Brent crude up 5.1% at $34.50.
• The benchmark 10-year Treasury yield slid below 0.74%.
• Gold rose 1.3% to $1,705.
• Bitcoin rose about 1% to roughly $7,330.