LONDON: Global stock markets rose on Tuesday on promising results from two clinical coronavirus vaccine trials, and after EU leaders finally clinched a landmark 750-billion-euro ($860bn) stimulus deal.

“A combination of vaccine optimism and fiscal stimulus is boosting the mood,” City Index analyst Fiona Cincotta said.

“Encouraging results ... in addition to EU leaders agreeing to a 750-billion-euro recovery fund, is overshadowing rising tension between the UK and China — and soaring Covid-19 numbers in California.”

The clinical studies provided a much-needed shot in the arm for investors, who have been put on edge by spikes in new infections around the world, causing a months-long surge across equities to stumble.

But two studies published in The Lancet medical journal sparked some cheer, with a trial among more than 1,000 adults in Britain finding a candidate vaccine induced “strong antibody and T cell immune responses” against the coronavirus.

That came as another trial of more than 500 people in China showed most had developed a widespread antibody immune response.

Meanwhile, British biotech firm Synairgen said a randomised trial of an aerosol-based treatment showed it could drastically reduce the number of new patients dying of the disease or requiring intensive care.

The European Union finally reached a stimulus agreement after four days of haggling.

“Deal!” tweeted EU Council Chief Charles Michel, whose job was to guide the talks over more than 90 hours.

Published in Dawn, July 22nd, 2020