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April 7, 2020, 5:37 a.m. EDT

Rally continues in European stocks on coronavirus hopes as pound recovers from Johnson hospitalization

By Steve Goldstein, MarketWatch


Associated Press
A police officer stands outside St Thomas' Hospital in central London as British Prime Minister Boris Johnson was moved to intensive care after his coronavirus symptoms worsened on April 6, 2020.

European stocks climbed for a second day as traders focused on data showing that the growth rate of the coronavirus spread is slowing.

Up 3.7% on Monday, the Stoxx Europe 600 (STOXX:XX:SXXP)  climbed 2.2%, and the German DAX (XEX:DX:DAX) , French CAC 40 (PAR:FR:PX1) and U.K. FTSE 100 (FTSE:UK:UKX)  also jumped.

The Dow Jones Industrial Average (DOW:DJIA)  shot up 1627.46 points, or 7.73%, on Monday, and futures on the blue chip index (CBT:YM00) rose another 600 points.

Beaten-up stocks from the pandemic surged. Movie-chain operator Cineworld Group (LON:UK:CINE) , which halted its dividend, jumped 44%, and cruise-ship operator Carnival (LON:UK:CCL)  climbed 23%. Both companies have dropped 78% this year.

Two of Europe’s better-performing stocks this year struggled, with diagnostics-test maker bioMerieux (PAR:FR:BIM)  and prepared-food-kit maker HelloFresh (FRA:DE:HFG)  retreating.

The stock market gains came as the global growth rate of coronavirus cases continued to slow, to 5.8% from 6%, according to data from Deutsche Bank, while the U.S. growth rate did edge back up to 9% from 8.2%. Still, that is the second straight day of sub-10% growth in the U.S. The news on the virus front wasn’t entirely positive, as Japan declared a state of emergency in seven prefectures.

As the virus outbreak continues, U.S. lawmakers are considering another stimulus package that could be worth more than $1 trillion, according to The Washington Post .

The pound (XTUP:GBPUSD)  more than recovered the losses from the hospitalization of U.K. Prime Minister Boris Johnson over the coronavirus.

Johnson stayed overnight in the intensive care unit.

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