European stock index futures jump as coronavirus death toll slows

European stock index futures shot up more than 4% on Monday as a slowdown in coronavirus deaths in France and Italy raised hopes that sweeping lockdown measures were starting to show results.

Euro Stoxx 50 futures were up 3.5%, with German DAX futures and French CAC futures gaining 4.0% and 3.2%, respectively. Italy reported its lowest daily deaths for more than two weeks on Sunday, while France's daily death toll from the novel coronavirus dropped and admissions into intensive care slowed.

"(There are) tentative signs that equity investors may be looking through what remains a worrying pick-up in COVID-19 cases," said Ian Williams, an analyst at Peel Hunt LLP in London. The benchmark STOXX 600 index has tumbled 28% - or lost more than $3 trillion in market value - since mid February, when the worldwide spread of the coronavirus prompted nationwide stay-at-home orders, virtually halting economic activity.

Data on Friday showed business activity in the euro zone contracted severely in March, foreshadowing a deep economic and earnings recession and raising the threat of corporate defaults and more mass layoffs. Norwegian Air said on Monday its passenger volume fell by 60% year-on-year in March, while British aero-engine maker Rolls-Royce said it would not pay its last dividend in a bid to shore up liquidity.

Gains for FTSE 100 futures were capped by reports that British Prime Minister Boris Johnson was still in the hospital on Monday suffering persistent coronavirus symptoms 10 days after testing positive.

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