Markets look to economic recovery and vaccine hopes

European markets bounced on Monday morning as investors focus on the prospect of economic recovery and progress on potential coronavirus drugs, shrugging off concerns about a further acceleration of the pandemic.

The pan-European Stoxx 600 added 1.6% in early trade, with banks jumping 3.2% to lead gains as all sectors and major bourses entered positive territory.

Stocks in Europe look set to follow the trend set in Asia overnight as mainland Chinese stocks rallied on bullish sentiment, with the Shanghai composite surging more than 4% to lead gains.

The European Commission said Friday that conditional approval had been granted for Gilead’s antiviral drug remdesivir to be used in the EU, making it the first authorized treatment for the virus in the region. The Sunday Times newspaper then reported that the U.K. is closing in on a £500 million ($624 million) supply deal with Sanofi and GlaxoSmithKline for 60 million doses of a potential vaccine.

The World Health Organization said Saturday that more than 200,000 coronavirus cases were confirmed worldwide over a 24-hour period – a new record – with the Americas accounting for around 130,000 new cases. In the U.S., Florida and Texas reported record increases in new daily cases on Saturday, while cases rose in 39 states.

In corporate news, Commerzbank CEO Martin Zielke and chairman Stefan Schmittmann were ousted on Friday following a shareholder revolt led in part by U.S. private equity firm Cerberus Capital Management, with the search for new leadership taking center stage this week.

On the data front, a host of construction PMI (purchasing managers’ index) readings and retail sales figures are expected out of the euro zone on Monday.