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Global stocks rally on US Covid treatment approval

Financial markets around the world have rallied strongly after the US government approved a coronavirus treatment using the plasma of recovered patients and hopes rose for the development of a vaccine.

Against a backdrop of growing optimism that medical advances could fuel a sustainable economic recovery from the pandemic, stocks in Europe climbed higher on Monday after gains in Asia overnight.

Share prices on Wall Street hit a fresh record high, driven by large technology companies that stand to benefit most from consumers and businesses moving online as the pandemic disrupts physical interaction.

After Donald Trump authorised on Sunday the use of convalescent plasma, a method that has been used to treat flu and measles, for Covid-19 patients, the S&P 500 index rose by 0.7% and the Dow Jones Industrial Average gained 1%.

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