Stock markets have bounced back on reports suggesting Donald Trump's health is improving after the US president tested positive for the coronavirus, with traders also cheered by signs that American lawmakers were edging towards agreement on a new stimulus package, reported AFP.

Global equities had sunk on Friday after the White House announced Trump's diagnosis, which fanned fresh uncertainty a month before the November 3 presidential election, with some commentators questioning whether the vote would actually take place.

Oil prices also began staging a recovery after last week's heavy losses, while the dollar traded mixed.

“Stock markets in Europe are showing respectable gains... on the back of the optimism surrounding the health of President Trump,” said CMC Markets analyst David Madden.