Global stocks surge as investors ignore record new COVID-19 infections, and pin their hopes on the start of earnings season

• Stocks across the globe rose on Monday despite continuing signs that the coronavirus pandemic is speeding up once again.
• Investors were upbeat ahead of earnings season kicking off this week, with many US banks due to report.
• In China, the Shenzhen Component jumped 3.5%, while European stock indexes climbed around 1%, and US futures pointed to a 0.5% gain on the three main indexes.
• On Sunday, Florida reported 15,000 new COVID-19 cases, the highest single day rise for any US state since the start of the pandemic.
• Away from stocks, oil fell ahead of an OPEC+ meeting on Wednesday that will decide whether production cuts are eased next month.

Global stocks rose on Monday as investors ignore rising COVID-19 cases around the world, and build towards the start of the second quarter earnings season, which kicks off in earnest this week.

All major stock indices were in positive territory, with the sharpest gains seen in Asia.

China's SZSE Component Index rose as much as 3.5% by the close. Stocks were also up in Europe and US futures were pointing to an increase of around 0.5% for major US indexes.

In Europe, the DAX in Germany climbed 0.9%, while the UK's FTSE 100 was up just shy of 1%.

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Naeem Aslam, chief market analyst at Avatrade, said: "European markets and the US futures are trading higher [as] traders are focused on the quarter earnings season and the hope is that it will set more positive tone for the coronavirus stock market rally."

Here's the market roundup as of 1.32 p.m. London time (8.33 a.m. ET)

• Asian indexes closed higher, with China's Shanghai Composite up 1.8%, Hong Kong's Hang Seng up 0.2%, and Japan's Nikkei up 2.2%.
• European equities were up, with Germany's DAX up 1%, Britain's FTSE 100 up 1.1%, and the Euro Stoxx 50 up 1.3%.
• US futures are up. Futures underlying the Dow Jones Industrial Average are up 0.7%, the S&P 500 is up 0.7% and the Nasdaq is up 0.9%.
• International oil prices fell. Brent crude is down 1.2%, while US oil, West Texas Intermediate fell 1.3%.
• The benchmark 10-year Treasury yield rose to 0.66%.
• Gold rose 0.6% to $1,813 per ounce.

Wall Street's giants, JP Morgan, Bank of America, Wells Fargo, Goldman Sachs, BNY Mellon and Citigroup, will post quarterly earnings this week.

Jeffrey Halley, senior market analyst, Asia-Pacific, OANDA, said: "Earnings season for Q2 in the US kicks off this week, with the largest banks reporting across the week."

"I expect that trading revenues will outperform once again as market volatility continues. More attention is likely to be given; however, to the big banks' forward guidance on the global economy, and the level of bad debt provisioning," he added.

The optimism surrounding various banks' earnings comes despite the number of coronavirus cases rising sharply in the US and around the globe.

Florida added more than 15,000 cases on Sunday, the highest single-day rise in any US state since the pandemic began.

The World Health Organization also reported a record-breaking number of new cases, 230,000, on Sunday, breaking the previous daily global record of 228,000, which came just last Friday.

The oil market posted some losses on Monday after reports that the OPEC+ may ease production cuts in August, which would mean bringing more supply to the market.

Brent was down 1.5% at $42.66, while West Texas Intermediate, the US marker, fell 1.8% to $39.87 a barrel, as of 5.18 am. ET.

The OPEC+ agreed to curb production by around 9.7 million barrels in April, and cuts began in May and June. Production cuts were later extended until July.

OPEC+'s Joint Ministerial Monitoring Committee (JMMC) will meet on Wednesday to decide whether production will be eased next month or not.

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Halley said there is a possibility of a "taper-tantrum" if production cuts are eased.

He added: "However, I am 50/50 on the decision, with persuasive arguments to be made for either course of action. Expect oil to remain in choppy range trading until the JMMC's recommendations are made public."