At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a high. The benchmark index is currently up 2.4% to 5,546.6 points.
Here's what has been happening:
COVID-19 treatment news.
The catalyst for the ASX 200's strong gain on Friday has been news that a leading treatment candidate for COVID-19 has delivered strong trial results. According to CNBC, details have leaked from a phase 3 clinical trial being undertaken by The University of Chicago on Gilead Sciences' Remdesivir product. The details reveal that most of its patients had "rapid recoveries in fever and respiratory symptoms" and were discharged in under a week.
Travel and tourism shares surge higher.
One of the hardest hit areas of the market during the coronavirus pandemic has been the travel sector. Unsurprisingly, news that there is a potentially effective treatment for COVID-19 has sent travel shares surging higher on Friday. At the time of writing, the likes of Qantas Airways Limited (ASX: QAN), Sydney Airport Holdings Pty Ltd (ASX: SYD), and Webjet Limited (ASX: WEB) are all notably higher.
Rio Tinto delivers strong first quarter production.
The Rio Tinto Limited (ASX: RIO) share price is pushing higher on Friday after its first quarter update revealed solid production and shipments. As a result, the mining giant remains on track to achieve the majority of its production guidance for the full year. Another positive was that it reiterated its full year unit cost guidance for iron ore and copper production.
Best and worst performers.
The best performer on the ASX 200 on Friday has been the Charter Hall Group (ASX: CHC) share price with a 12% gain. A number of property companies are storming higher with the market today. The worst performer on the index has been the Whitehaven Coal Ltd (ASX: WHC) share price with a decline of almost 5%. This morning analysts at Macquarie downgraded the coal miner's shares to an underperform rating following a weaker than expected quarterly update.
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Returns as of 7/4/2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited and Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
