European stock index futures jump on plans to re-open U.S. economy

(Reuters) – European stock index futures surged more than 3% on Friday, as U.S. President Donald Trump rolled out plans for a gradual re-opening of the economy and on reports of a potential drug to treat the COVID-19 disease.

Euro Stoxx 50 futures were up 3.3% at 0600 GMT, with German DAX , French CAC and FTSE 100 futures jumping between 2.8% and 3.4%, shrugging off data showing China suffered its worst economic contraction in almost three decades.

The benchmark STOXX 600 index <.stoxx> has rallied about 20% since hitting an eight-year low in March on the back of historic global stimulus and on hopes strict stay-at-home orders would be eased as the health crisis showed signs of ebbing.

Late on Thursday, Trump laid out new guidelines for U.S. states to emerge from the shutdowns in a staggered, three-stage approach, sending S&P 500 futures to a near five-week high.

Also lifting the mood at the end of the week, a report detailed encouraging partial data from trials of U.S. drugmaker Gilead Sciences Inc’s experimental drug remdesivir in severe COVID-19 patients.

(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Arun Koyyur)