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Stock markets struggled on Friday as hopes of quickly finding a treatment for coronavirus were dashed, analysts said, and more crushing economic data delivered a body blow to confidence.
Reports said initial trials of the remdesivir coronavirus drug being developed by Gilead Sciences had flopped.
Investors were “reacting badly” to the information, Oanda analyst Craig Erlam.
“This was a ray of hope earlier this week and already we’re learning the pitfalls of getting too excited about these cures at the early stages of testing,” Erlam said.
Key European markets were all lower, while Wall Street trod water at the New York opening bell.
Michael Hewson, at CMC Markets UK, said markets would probably be “swinging around” in the coming weeks on the success or failure of antiviral and vaccine trials “as investors look for crumbs of comfort”.
European equities were knocked also by news that EU leaders stood divided over the size of a financial rescue package to stimulate the bloc’s economy left battered by the pandemic.
“They seem to have agreed on the idea of a recovery fund while leaving the details for a future date,” Erlam said. – AFP.
Online Reporter