European markets react as EU leaders strike stimulus fund deal


The pan-European Stoxx 600 climbed 1.1% at the start of trading, with banks adding 3.4% to lead gains, with all sectors and major exchanges trading in positive territory.EU heads of state had been stuck in talks since Friday morning to discuss the proposed stimulus fund and the upcoming EU budget, but there had been deep divisions over the size and composition of the fund . Early Tuesday morning, however, the leaders reached a breakthrough agreement.

European Council President Charles Michel said he believed the deal would be seen as a “turning point” for Europe. ” We did it! Europe is strong. Europe is united, ”he said on Tuesday at a press conference announcing the agreement. “These were, of course, difficult negotiations in very difficult times for all Europeans. “

The positive news in the search for a vaccine against the coronavirus is also likely to support market sentiment in Europe again on Tuesday. Asia-Pacific markets mostly rose on Tuesday after investor sentiment was supported by a string of positive news on the coronavirus vaccine front. Pfizer and BioNTech reported early positive data on a joint coronavirus vaccine on Monday and another candidate from the University of Oxford and AstraZeneca also showed a positive immune response in a first trial. The coronavirus has now infected more than 14.6 million people worldwide and killed more than 608,000.

Income at a glance

Major corporate profits were thick and swift on Tuesday morning, with UBS reporting net income of $ 1.23 billion for the second quarter of 2020, down 11% from the same period last year (1 , $ 4 billion). Analysts polled by the Swiss lender expected a net profit of $ 973 million.

Swiss pharmaceutical maker Novartis slashed its sales outlook for 2020 after reporting lower second-quarter profits and sales, with net profit down 4% to $ 1.9 billion from $ 2.1 billion. dollars over the same period in 2019.

Swedish automaker Volvo fell to an operating loss in the first half of the year, but said it expects companies to recover as countries exit lockdown measures, after experiencing a strong rebound in China since the reopening of the economy.

In terms of individual share prices, French telecommunications provider Altice Europe, Dutch recruiter Randstad and Spain’s Banco de Sabadell all gained over 6% early in the trade.

At the bottom of the European blue chip index, Evolution Gaming fell 7.8% after signing a strategic partnership with Intralot.


Please enter your comment!
Please enter your name here