By Steve Goldstein, MarketWatch
European stocks jumped at the open, as data showed new coronavirus cases growing at the slowest rate in months while the head of the Federal Reserve said the U.S. central bank had plenty of ammunition to fight the economic crisis.
After dropping 3.8% last week, the Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP -1.20% climbed 2.6%.
The German DAX /zigman2/quotes/210597999/delayed DX:DAX -0.71% gained 3.5%, the French CC 40 /zigman2/quotes/210597958/delayed FR:PX1 -1.58% advanced 3% and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -1.55% rallied 2.8%.
The 0.9% growth in global new coronavirus cases was the first sub-1% reading since Feb. 24, and the growth of deaths of 0.7% was the first sub-1% rise of the outbreak, according to data compiled by Deutsche Bank.
Federal Reserve Chairman Jerome Powell told CBS’s 60 Minutes program that “we’re not out of ammunition by a long shot” as he said the Fed could enlarge existing lending programs or start new ones. Powell appears before the Senate Banking Committee on Tuesday.
“Investors took heart by some follow-up comments, where Powell reaffirmed the Fed is not out of ammunition, and that there’s ‘really no limit to what we can do’ within the existing stimulus programs,” said Marios Hadjikyriacos, investment analyst at XM.
In Europe, the Austrian, Belgian, Greek, French, Italian and Spanish securities regulators have jointly decided to end their short-selling bans that had been in place since the middle of March.
Greece reopened the Acropolis in Athens as European ministers discussed whether to reopen their countries to foreign visitors for summer vacations.
Ryanair Holdings /zigman2/quotes/205429530/delayed IE:RY4C -3.18% jumped 10% as the airline forecast a loss and said it would cut 3,000 staff jobs. Analysts at Irish stockbroker Goodbody said the forecast of carrying “no more than 50%” of its original second-quarter target of 44.6 million passengers and that it would lose less than the first quarter is “pretty good given the scale of the challenges faced by the airline.”
Aeroports de Paris shares /zigman2/quotes/203616065/delayed FR:ADP -1.40% rose 11%. The company reported a 99% traffic drop for April.
Futures on the Dow Jones Industrial Average /zigman2/quotes/210407078/delayed YM00 +0.06% rose over 500 points and crude-oil futures /zigman2/quotes/211629951/delayed CL.1 +0.52% climbed above the $30 per barrel mark.
The euro /zigman2/quotes/210561242/realtime/sampled EURUSD +0.2539% was little changed at $1.0815.