European stocks rose Monday morning, buoyed by the resumption of coronavirus vaccine trials.
The European Stoxx 600 Index rose 0.6% in early trading, with technology stocks adding 1.1% to lead the gains as all major sectors and exchanges entered positive territory.
Global stocks are receiving a boost from news that trials of the AstraZeneca phase III coronavirus vaccine have resumed in the UK after trials were halted last week due to safety concerns. The news raises hope that one of the main candidates in the global race to develop an injection that can stop the epidemic is getting back on track.
AstraZeneca said it has received confirmation from the UK Medicines Health Regulatory Authority that it is safe to resume clinical trials. The company refused to disclose medical information about stopping the trial, but earlier this week indicated an unexplained illness was under investigation.
The news comes as the number of coronavirus cases continued to rise over the weekend in nearly a dozen US states. Dr. Anthony Fauci, the country’s leading infectious disease expert, described the data as “worrying”.
Covid-19 cases were growing 5% or more, based on the weekly average to facilitate daily reporting, in 11 states as of Sunday, according to CNBC’s analysis of data compiled by Johns Hopkins University, up from eight states on Friday.
Meanwhile, shares in Asia rose in trading on Monday, as investors awaited the shares of the Japanese giant SoftBank Group after announcing it had sold British chip designer Arm to US chip company Nvidia in a deal worth $ 40 billion, the two companies announced on Sunday.
The news helped lift sentiment in the US with stock futures surging Sunday night, following a sell-off in tech stocks last week.
On the data front, industrial production data for the euro zone for July will be released, and OPEC will release its latest monthly report on the oil market.
In terms of individual stock price movement, shares of Dassault Aviation jumped more than 9% in early trading of the Stoxx 600 Command after the Hellenic Air Force announced an order for 18 of its Rafale combat aircraft. British Airways’ IAG has gained over 9%.
At the other end of the European index, Belgian pharmaceutical company Galapagos fell 4%.