Futures Soar On Media Reports Of Drug Breakthroughs For Coronavirus

Global equity futures soared around 0300 ET on reports that a Chinese university has discovered a new drug to treat coronavirus, reported Reuters.

  • TRADERS CITE SPIKE IN STOCKS TO CHINESE TV REPORT THAT RESEARCH TEAM AT ZHEJIANG UNIVERSITY HAS FOUND EFFECTIVE DRUG TO TREAT PEOPLE WITH THE NEW CORONAVIRUS  
  • U.S. STOCK FUTURES ESc1 RISE SHARPLY, NOW UP 0.6%, ON MEDIA REPORTS OF CORONAVIRUS DRUG BREAKTHROUGHS – TRADERS

Chinese TV on Wednesday said a medical team at Zhejiang University had found a promising drug to treat infected people. 

Reuters notes that the media reports have yet to be verified.

S&P500 E-mini has jumped 70bps to 3,325 level on the report. 

Roundtrip for S&P500 E-mini despite confirmed coronavirus cases and deaths soaring in mainland China. But now it's all on the hope of a new drug in an unverified report on Chinese TV. 

"Equity markets in Europe have had a sharp turnaround on the back of unconfirmed reports," said David Madden, market analyst at CMC Markets UK.

"Traders have taken the view that the situation is now more likely to be under control and hopefully the spread of the health crisis will be stemmed and it hopefully leads to a return to normality in China and around the world,” Madden said.

One must question the optically pleasing headline and ask: Are things really under control in China? 

"Contained" ?

Don't worry, everything is "contained" in Japan...