Global stockmarkets shot higher on Wednesday after a US company reported positive results on the use of its anti-viral drug Remdesivir against the new coronavirus which more than offset news of a massive downturn in the American economy.

US and European stocks both advanced after Gilead Science said that remdesivir, one of the most highly anticipated drugs being tested against the new coronavirus, showed positive results in a large-scale US government trial.

It said the National Institute of Allergy and Infectious Diseases would provide more information.

"The US recession is beginning, but financial markets seem to only care about Gilead's remdesivir," said market analyst Edward Moya and online currency trading firm Oanda.

"Risk appetite is roaring back on news that positive data came out of the National Institute of Allergy and Infectious Diseases’(NIAID) study of the investigational antiviral remdesivir for the treatment of COVID-19."

Shares in Gilead Science were up 5.7 percent in late morning trade in the United States.

Remdesivir is an an anti-viral medicine and not a vaccine, thus it could help in the treatment of those infected with the new coronavirus but not block new infections -- which is key to ending lockdowns and other restrictions that have hammered the global economy.

However another study, this time based on patients in Wuhan, China, believed to be the starting point for the pandemic, showed no significant benefits in patients.

"Investors should know the script by now," said Chris Beauchamp, chief market analyst at online trading firm IG.

"This is a market that ignores or rides out bad news and focuses on the good data, no matter how limited that might be," he said.

The bad news Wednesday was a worse than expected 4.8 percent contraction in US first quarter GDP.

Meanwhile oil prices spiked, with US benchmark oil WTI soaring by more than a third, following data showing crude stockpiles in the United States rose less than expected.