LONDON - A drop in the number of noval coronavirus cases and the Federal Reserve chairman’s optimistic view of the economy lifted world stocks for a third day on Wednesday and sparked a 2% rally in oil prices, on hopes the epidemic’s effects would be contained.

MSCI’s global equity index rose 0.12 percent to stand just off Tuesday’s record highs. A pan-European equity index rose to a record as automobile stocks - which depend on exports to China - jumped 1.2 percent.

Futures indicated Wall Street would extend gains from Tuesday, when the S&P 500 and Nasdaq posted record closing highs.

Brent crude futures rose from 13-month lows, helped by the likelihood producers would cut output. Brent is still down almost 20 percent from its peaks in early January.

Yields on US Treasuries and German Bunds rose 3 to 4 basis points. Ten-year US yields are now 13 bps off the four-and-a-half-month lows hit late January though almost 30 bps below where they started 2020.