European markets open higher after EU leaders reach recovery fund deal

21 July,2020

European Union (EU) leaders reached a deal on a 750 billion euro ($857 billion) recovery fund to help the region recover from the coronavirus crisis.

European stocks opened higher Tuesday after European Union (EU) leaders reached a deal on a 750 billion euro ($857 billion) recovery fund to help the region recover from the coronavirus crisis.
 

The pan-European Stoxx 600 climbed 1% at the start of trading, with tech stocks adding 2.1% to lead gains as all sectors and major bourses entered positive territory.

EU heads of state had been locked in talks since Friday morning to discuss the proposed recovery fund and the EU’s next 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 believes this deal will be seen as a “pivotal moment” for Europe. “We did it! Europe is strong. Europe is united,” he said in an early Tuesday press conference announcing the agreement. “These were, of course, difficult negotiations in very difficult times for all Europeans.”

Positive news in the hunt for a coronavirus vaccine is also likely to buoy market sentiment in Europe again Tuesday. Asia Pacific markets mostly rose Tuesday after investor sentiment was supported by a slew of positive news on the coronavirus vaccine front. 

Pfizer and BioNTech reported early positive data on a joint coronavirus vaccine Monday and another candidate from Oxford University and AstraZeneca also showed a positive immune response in an early trial. The coronavirus has now infected more than 14.6 million people worldwide and killed over 608,000.