Equity markets gained for a second straight session on Monday as hopes for a coronavirus treatment boosted risk assets and markets geared up for the US Federal Reserve’s annual Jackson Hole meeting later in the week.

Europe’s pan-regional STOXX 600 rose 1.3% and the global benchmark added 0.4% after US regulators authorised the use of blood plasma from recovered patients as a treatment option.

The rises follow healthy gains in Asia, where MSCI’s broadest index of Asia-Pacific shares ex-Japan jumped 0.8% to flirt with a six-month high touched last week and Japan’s Nikkei added 0.3%.

US futures indicated gains on Wall Street ahead, raising the prospect of record highs for the S&P 500.

Markets latched onto an announcement from the US Food & Drug Administration for an “emergency use authorisation” which will allow the use of blood plasma from patients who have recovered from COVID-19 as a treatment for the disease.

“Whenever there is any news that is seen as something that is helping the battle against coronavirus it gives a boost to sentiment,” said Shane Oliver, Sydney-based chief economist at AMP.

Equity market sentiment was also supported by a Financial Times report that the Trump administration is considering by-passing normal US regulatory standards to fast-track an experimental coronavirus vaccine from the UK for use in the United States before the presidential election in November.

Yet rising infection numbers in various parts of the world, especially Europe, cast a cloud over the latest gains, analysts said.

“In spite of its relative success in suppressing the first wave of the virus, it’s Europe that’s begun to re-emerge as a source of concern in recent days given the latest rises in case numbers, a trend that continued through the weekend,” said Henry Allen at Deutsche Bank.

Looming large over this week was an address by Federal Reserve Chair Jerome Powell at the Kansas City Fed Jackson Hole symposium, where he will speak on the Fed’s monetary policy framework review.

“Fed chair Powell will speak (virtually) on the Fed’s Policy Framework Review, and we see a possibility for the Fed to shift to an average inflation target or at the least change its wording regarding inflation overshooting the target,” SEB’s Lina Fransson said in a note to clients.

The risk-on mood also filtered through to fixed-income markets with safe-haven German bond yields ticking up after falling for six consecutive sessions last week, the longest decline since January.

In currency markets, the dollar index slipped and the dollar weakened against the safe-haven Japanese yen at 105.83.

The British pound held steady at $1.3090 after declining 0.9% on Friday on lack of progress in post-Brexit trade talks with the European Union.

The euro was at $1.1800 after falling 0.5% on Friday following disappointing manufacturing activity data.

Storms bearing down on the Gulf of Mexico, shutting more than half its oil production, helped push up crude oil futures. oil prices strengthened on Monday as storms threatening the Gulf of Mexico shut more than half of the region’s oil production and on expectations of progress in the development of a COVID-19 treatment.

Brent crude was up 53 cents, or 1.2%, at $44.88 a barrel by 11:22am. US West Texas Intermediate crude rose 28 cents, or 0.7%, to $42.62.

“Prices are taking their cues from Mother Nature this morning as two storms bear down on the Gulf of Mexico. Half of the region’s production has been shut down, though gains will be limited by the threat of a second prolonged COVID wave,” said Stephen Brennock of oil broker PVM.

Energy companies shut more than 1 million barrels per day (bpd) of offshore crude oil production in the U.S. Gulf of Mexico because of the twin threat from Hurricane Marco and Tropical Storm Laura. Workers have been evacuated from more than 100 production platforms.

“The much larger pricing impact off of the storm factor is falling on the product markets since refinery activity in the Texas and Louisiana region could be significantly reduced due to flooding,” Jim Ritterbusch, of Ritterbusch and Associates, said in a note. Motiva Enterprises may shut the largest crude oil refinery in the United States for the bad weather later this week, according to sources. US gasoline futures were up more than 5%.

Gold dips: Gold prices fell on Monday as risk sentiment improved after the US drug regulator authorised the use of blood plasma from recovered COVID-19 patients as a treatment option, while the dollar held firm. Spot gold was down 0.4% at $1,932.48 per ounce by 0654 GMT after hitting a one-week low of $1,910.99 on Friday. US gold futures fell 0.2% to $1,942.60.

Agencies