Last checked at 
(Alliance News) - Stocks in London ended sharply higher on Wednesday after a possible coronavirus treatment yielded positive results in the fight against the pandemic.
Gilead Sciences said preliminary results of its experimental trial for Remdesivir showed at least 50% of patients treated with a five-day dosage improved and more than half were discharged from the hospital within two weeks.
The virus has killed more people in the US than the Vietnam War from 1955 to 1975, with more than 58,300 deaths as of early Wednesday, according to John Hopkins University data. Worldwide, there are over three million confirmed cases and more than 217,100 deaths.
The Foster City, California-based firm said it plans to submit the full data for publication in a peer-reviewed journal in the coming weeks.
"These study results complement data from the placebo-controlled study of Remdesivir conducted by the National Institute for Allergy & Infectious Diseases and help to determine the optimal duration of treatment with remdesivir," said Gilead Chief Medical Officer Merdad Parsey.
"The study demonstrates the potential for some patients to be treated with a 5-day regimen, which could significantly expand the number of patients who could be treated with our current supply of remdesivir. This is particularly important in the setting of a pandemic, to help hospitals and healthcare workers treat more patients in urgent need of care," added Parsey.
Gilead's stock was up 4.3% in New York.
The FTSE 100 index closed up 156.75 points, or 2.6%, at 6,115.25, adding to Tuesday's 1.9% rise.
The FTSE 250 ended up 543.76 points, or 3.3%, at 16,835.34 and the AIM All-Share closed up 8.54 points, or 1.1%, at 813.50.
The Cboe UK 100 ended up 2.9% at 10,365.80, the Cboe UK 250 closed up 3.8% at 14,566.90, and the Cboe UK Small Companies ended up 1.2% at 9,075.60.
In Paris the CAC 40 ended up 2.3%, while the DAX 30 in Frankfurt ended up 3.0%.
"Risk appetite is roaring back on news that positive data came out of the National Institute of Allergy and Infectious Diseases' study of the investigational antiviral remdesivir for the treatment of Covid-19. Today's main event was not the Fed policy decision, nor that the US economy shrank by 4.8%, the sharpest pace since the Great Recession, but news that Gilead's anti-viral drug Remdesivir met the primary endpoint of a government run study to treat the Covid-19," said OANDA market analyst Edward Moya.
"The pressure will grow on the federal government to help the states get testing, but with a possible treatment nearing FDA approval, the Trump administration will likely become more supportive," added Moya.
In the FTSE 100, Barclays closed up 15% despite the lender reporting disappointing first-quarter results.
In the three months to March 31, the lender recorded pretax profit of GBP913 million, 38% lower than the GBP1.48 billion seen in the first quarter of 2019. Credit impairments in the quarter jumped to GBP2.12 billion from GBP448 million the year before. Barclays's total operating expenses were flat year-on-year at GBP3.25 billion. Net operating income was down 13% year-on-year to GBP4.17 billion compared to GBP4.80 billion. Total income was up 20% to GBP6.28 billion from GBP5.25 billion.
Barclays noted it will decide on future dividends and its capital returns policy at the end of 2020.
The pound was quoted at USD1.2434 at the London equities close, flat from USD1.2436 at the close Tuesday.
AstraZeneca closed up 0.2% after the Anglo-Swedish drugmaker said profit increased sharply in the first quarter of the year as revenue rose across all of its therapy areas and all markets.
The FTSE 100-listed pharmaceutical firm reported a USD935 million pretax profit for the three months ended March 31, a 23% rise from USD758 million the year before.
Core earnings per share rose 17% to USD1.05, up 21% at constant currency.
At the other end of the large-cap index, GlaxoSmithKline closed down 0.6%. The pharmaceutical giant said profit rose in the first quarter of the year helped by stock building and higher demand in response to Covid-19 pandemic, with development of a vaccine now its "primary aim".
Glaxo reported a GBP1.84 billion pretax profit for the three months ended March 31, up 42% from GBP1.30 billion the year before. Revenue climbed 19% to GBP9.09 billion from GBP7.66 billion.
For now, Glaxo is maintaining its guidance for an annual drop in adjusted EPS of between 1% and 4% at constant currency despite ongoing Covid-19 uncertainty, but said it "will, if needed, update guidance as more information becomes available".
The euro stood at USD1.0855 at the European equities close, up from USD1.0834 a day before, ahead of the European Central Bank's interest rate decision.
The ECB Governing Council meets this week in Frankfurt, announcing its latest policy decision at 1245 BST on Thursday. This will be followed by a press conference with President Christine Lagarde at 1330 BST.
The central bank is expected to go further in supporting the virus-hammered eurozone economy by expanding its Pandemic Emergency Purchase Programme and buying up 'fallen angel' bonds, though it may wait until later in the year to announce the moves.
Against the yen, the dollar was trading at JPY106.58, from JPY106.89 late Tuesday.
Stocks in New York were sharply higher at the London equities close, shrugging off disappointing US economic data, as earnings season continued apace.
The DJIA was up 2.1%, the S&P 500 index up 2.3% and the Nasdaq Composite up 3.0%.
US gross domestic product slumped in the first quarter, missing market estimates, but this is likely to pale in comparison to what the next three months will bring for the American economy.
GDP fell 4.8% at an annualised rate in the first three months of the year, preliminary figures from the US Bureau of Economic Analysis showed on Wednesday. This followed a 2.1% rise in the fourth quarter of 2019.
Wednesday's reading was the worst since 2008, in the midst of the financial crisis.
On the corporate front, Alphabet shares surged 8.4% after the Google parent late Tuesday reported first-quarter earnings growth despite a coronavirus-induced slowdown in its core digital advertising operations in March.
Alphabet reported a profit of USD6.8 billion in the first three months of the year, up nearly three percent from last year, on revenue that grew 13% to USD41 billion.
Conversely, Boeing swung to a loss in the first quarter which the aerospace company attributed to the 737 MAX grounding and coronavirus outbreak.
For the first quarter ended March 31, revenue fell 26% to USD16.91 billion from USD22.91 billion in the first quarter in 2019. The company swung to a loss per share of USD1.11 in the first quarter from USD3.75 in earnings per share last year. Boeing posted a core loss per share of USD1.70 from EPS of USD3.16 last year.
However, the stock was up 7.9% on Wall Street.
Ahead, the US Federal Reserve will announce its latest interest rate decision at 1900 BST. The central bank is widely expected to keep rates at historic lows.
Brent oil was quoted at USD22.90 a barrel at the London equities close, up sharply from USD19.98 at the close Tuesday.
Gold was quoted at USD1,702.03 an ounce at the London equities close, flat from USD1,701.40 late Tuesday.
The economic events calendar on Thursday has inflation and GDP figures from the eurozone at 1000 BST and US jobless claims at 1330 BST.
The UK corporate calendar on Thursday has first-quarter results from oil major Royal Dutch Shell, drugmaker Hikma Pharmaceuticals and lender Lloyds Banking Group. There are also annual results from supermarket chain J Sainsbury.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
